Group 1: Earnings Performance - Under Armour reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share, representing an earnings surprise of -33.33% [1] - The company posted revenues of $1.13 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.20%, but down from $1.18 billion year-over-year [2] - Over the last four quarters, Under Armour has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Under Armour shares have lost about 19.8% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.26 on $1.36 billion in revenues for the coming quarter and $0.33 on $5.06 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Textile - Apparel industry, to which Under Armour belongs, is currently in the bottom 23% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Under Armour's stock performance [5]

Sales Forecast - Under Armour forecasts worse-than-expected sales for the current quarter [1] - This stalls a turnaround plan that was taking hold [1]

[Executive Summary & Strategic Overview](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Overview) [Company Overview & Strategic Direction](index=1&type=section&id=Company%20Overview%20%26%20Strategic%20Direction) Under Armour is executing a strategic transformation to enhance brand credibility, innovation, and operational discipline - Under Armour is undergoing a bold transformation to sharpen its brand, emphasizing sports credibility, innovation, style, and operational discipline[2](index=2&type=chunk) - Strategic focus includes strengthening brand positioning with premium products, increasing average selling prices through innovative offerings, optimizing top-volume programs, and creating a more compelling full price-to-value proposition[2](index=2&type=chunk) [First Quarter Fiscal 2026 Financial Review](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Review) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) The company's Q1 FY26 revenue declined while gross margin improved, resulting in a significantly reduced net loss compared to the prior year Q1 Fiscal 2026 Key Financial Highlights | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :----------- | | Revenue | $1.1 billion | $1.18 billion | -4% (-4% currency neutral) | | Gross Margin | 48.2% | 47.5% | +70 bps | | Operating Income (GAAP) | $3 million | $(299.7) million | N/A | | Net Loss (GAAP) | $3 million | $(305.4) million | N/A | | Adjusted Net Income | $9 million | $3.7 million | N/A | | Diluted Loss Per Share (GAAP) | $(0.01) | $(0.70) | N/A | | Adjusted Diluted Earnings Per Share | $0.02 | $0.01 | N/A | - Gross margin increase was primarily due to favorable foreign exchange, pricing, and product mix, partially offset by an unfavorable channel mix and higher supply chain costs[3](index=3&type=chunk) [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Q1 FY26 revenue declined across most segments and channels, with footwear showing the most significant drop [Revenue by Geographic Segment](index=1&type=section&id=Revenue%20by%20Geographic%20Segment) North America and Asia-Pacific revenues declined, while the EMEA region was the only segment to report growth Q1 Fiscal 2026 Revenue by Geographic Segment | Segment | Revenue (2025, in millions) | % Change (YoY) | Currency Neutral % Change (YoY) | | :-------------- | :-------------------------- | :-------------- | :------------------------------ | | North America | $670 | -5% | -5.3% | | International | $467 | -1% | -2.2% | | EMEA | $248.6 | +10% | +6.0% | | Asia-Pacific | $163.4 | -10% | -10.3% | | Latin America | $54.6 | -15% | -7.7% | [Revenue by Distribution Channel](index=1&type=section&id=Revenue%20by%20Distribution%20Channel) Both wholesale and direct-to-consumer channels experienced revenue declines, with a notable drop in eCommerce sales Q1 Fiscal 2026 Revenue by Distribution Channel | Channel | Revenue (2025, in millions) | % Change (YoY) | | :---------------- | :-------------------------- | :-------------- | | Wholesale | $649 | -5% | | Direct-to-consumer | $463 | -3% | | Owned & Operated Stores | N/A | +1% | | eCommerce | N/A | -12% | - eCommerce revenue accounted for **31%** of the total direct-to-consumer business for the quarter[3](index=3&type=chunk) [Revenue by Product Category](index=1&type=section&id=Revenue%20by%20Product%20Category) Footwear revenue declined significantly and apparel saw a slight decrease, while accessories revenue grew Q1 Fiscal 2026 Revenue by Product Category | Product Category | Revenue (2025, in millions) | % Change (YoY) | | :--------------- | :-------------------------- | :-------------- | | Apparel | $747 | -1% | | Footwear | $266 | -14% | | Accessories | $100 | +8% | [Operating Income by Segment](index=7&type=section&id=Operating%20Income%20by%20Segment) Operating income decreased in North America and Latin America but improved in the EMEA and Asia-Pacific segments Q1 Fiscal 2026 Operating Income by Segment | Segment | Operating Income (2025, in thousands) | % of Net Revenues (2025) | Operating Income (2024, in thousands) | % of Net Revenues (2024) | | :-------------- | :------------------------------------ | :----------------------- | :------------------------------------ | :----------------------- | | North America | $121,437 | 18.1% | $147,889 | 20.9% | | EMEA | $39,643 | 15.9% | $20,456 | 9.0% | | Asia-Pacific | $14,703 | 9.0% | $9,935 | 5.5% | | Latin America | $6,606 | 12.1% | $15,171 | 23.6% | [Non-GAAP Adjustments & Reconciliations (Q1 FY26)](index=11&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q1%20FY26)) Adjusted financial measures for Q1 FY26 exclude restructuring charges and litigation reserves to clarify core operational performance Q1 Fiscal 2026 Adjusted Financial Metrics | Metric | GAAP (2025, in thousands) | Adjusted (2025, in thousands) | GAAP (2024, in thousands) | Adjusted (2024, in thousands) | | :-------------------------------------- | :------------------------ | :-------------------------- | :------------------------ | :-------------------------- | | Selling, General & Administrative Expenses | $530,345 | $522,086 | $837,317 | $554,660 | | Operating Income (Loss) | $3,323 | $24,410 | $(299,728) | $8,015 | | Net Income (Loss) | $(2,612) | $8,568 | $(305,426) | $3,656 | | Diluted EPS | $(0.01) | $0.02 | $(0.70) | $0.01 | [Fiscal 2025 Restructuring Plan](index=2&type=section&id=Fiscal%202025%20Restructuring%20Plan) [Restructuring Plan Details](index=2&type=section&id=Restructuring%20Plan%20Details) The company initiated a restructuring plan to improve efficiencies, with total estimated costs between $140 million and $160 million - Restructuring plan announced in May 2024 aims to improve financial and operational efficiencies[4](index=4&type=chunk) - Estimated total cost of the plan is between **$140 million and $160 million**, with up to **$90 million** cash-related and **$70 million** non-cash charges[4](index=4&type=chunk) - As of Q1 FY26, **$110 million** in charges have been recorded, with **$65 million** cash-related and **$45 million** non-cash-related[4](index=4&type=chunk) - Remaining charges are anticipated to be recognized by the end of fiscal 2026[4](index=4&type=chunk) [Second Quarter Fiscal 2026 Outlook](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Outlook) [Financial Projections](index=2&type=section&id=Financial%20Projections) The Q2 FY26 outlook projects a revenue decline and significant gross margin compression, leading to a potential operating loss - Revenue is expected to decline **6-7%** in Q2 FY26[6](index=6&type=chunk) - North America revenue is anticipated to decrease by a **low-double-digit percentage**, while EMEA is projected to grow at a **high-single-digit rate**, and Asia-Pacific to decline by a **low-teens percentage**[6](index=6&type=chunk) - Gross margin is expected to decline **340-360 basis points**, mainly due to supply chain headwinds and unfavorable channel mix[6](index=6&type=chunk) - Operating income is expected to range from a **$10 million loss to $0 million**, with adjusted operating income forecasted between **$30 million and $40 million**[6](index=6&type=chunk) - Diluted loss per share is expected to range from **$0.07 to $0.08**, with adjusted diluted earnings per share anticipated between **$0.01 and $0.02**[6](index=6&type=chunk) [Non-GAAP Adjustments & Reconciliations (Q2 FY26 Outlook)](index=13&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q2%20FY26%20Outlook)) The Q2 FY26 outlook is adjusted for restructuring charges to provide a clearer view of expected core operating performance Q2 Fiscal 2026 Adjusted Outlook | Metric | GAAP Low Estimate | GAAP High Estimate | Adjusted Low Estimate | Adjusted High Estimate | | :-------------------------- | :---------------- | :----------------- | :-------------------- | :--------------------- | | Operating Income (Loss) | $(10) million | $0 million | $30 million | $40 million | | Diluted Loss Per Share | $(0.08) | $(0.07) | $0.01 | $0.02 | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 FY26 statement of operations shows a significantly narrowed net loss compared to the prior year, driven by lower SG&A expenses Condensed Consolidated Statements of Operations (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $1,134,068 | $1,183,665 | | Cost of goods sold | $587,572 | $620,990 | | Gross profit | $546,496 | $562,675 | | Selling, general and administrative expenses | $530,345 | $837,317 | | Restructuring charges | $12,828 | $25,086 | | Income (loss) from operations | $3,323 | $(299,728) | | Net income (loss) | $(2,612) | $(305,426) | | Diluted net income (loss) per share | $(0.01) | $(0.70) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased as of June 30, 2025, primarily due to higher cash, inventories, and new debt maturities Condensed Consolidated Balance Sheets (Unaudited; in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Total assets | $4,865,191 | $4,300,871 | | Cash and cash equivalents | $910,985 | $501,361 | | Inventories | $1,141,829 | $945,836 | | Total liabilities | $2,990,762 | $2,410,593 | | Current maturities of long-term debt | $599,757 | $0 | | Total stockholders' equity | $1,874,429 | $1,890,278 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations decreased, but a significant inflow from financing activities led to a substantial increase in total cash Condensed Consolidated Statements of Cash Flows (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $48,852 | $152,975 | | Net cash provided by (used in) investing activities | $(35,362) | $4,319 | | Net cash provided by (used in) financing activities | $387,303 | $(128,220) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $410,107 | $26,244 | | Cash, cash equivalents and restricted cash (End of period) | $925,158 | $903,161 | - Proceeds from long-term debt and revolving credit facility totaled **$400 million** in Q1 FY26[26](index=26&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Non-GAAP Financial Information (General Explanation)](index=3&type=section&id=Non-GAAP%20Financial%20Information%20(General%20Explanation)) The company utilizes non-GAAP measures to exclude currency fluctuations and restructuring charges for a clearer view of operational performance - Non-GAAP measures like 'currency-neutral' and 'adjusted' results are used to provide valuable information for comparing operational results across different periods[8](index=8&type=chunk) - Currency-neutral data eliminates fluctuations in foreign currency exchange rates, while adjusted measures exclude effects of the fiscal year 2025 restructuring plan and associated charges[8](index=8&type=chunk) [Forward-Looking Statements & Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) The report's forward-looking statements are subject to risks including economic conditions, competition, and supply chain issues - Forward-looking statements relate to expectations, beliefs, projections, plans, and strategies concerning matters that are not historical facts[10](index=10&type=chunk) - Actual activities or results may differ significantly due to risks, uncertainties, assumptions, and changes in circumstances[10](index=10&type=chunk) - Important factors that could cause material differences include changes in economic/market conditions, global events, trade environment, increased competition, fluctuations in raw material costs, ability to execute strategies, and impacts from litigation[11](index=11&type=chunk) [Company-Owned & Operated Door Count](index=14&type=section&id=Company-Owned%20%26%20Operated%20Door%20Count) The total number of company-owned and operated doors remained stable year-over-year at 442 globally Company-Owned & Operated Door Count | Region/Type | June 30, 2025 | June 30, 2024 | | :------------------ | :------------ | :------------ | | North America total | 195 | 200 | | International total | 247 | 241 | | Total doors | 442 | 441 | [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) A conference call and webcast were held on August 8, 2025, to discuss the first quarter fiscal 2026 results - The conference call for Q1 FY26 results was held on August 8, 2025, at approximately 8:30 a.m. Eastern Time[7](index=7&type=chunk) - The call was streamed live and is available for replay on the company's investor relations website: https://about.underarmour.com/investor-relations/financials[7](index=7&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations inquiries are provided - Contact for Finance & Capital Markets: Lance Allega, Senior Vice President[12](index=12&type=chunk) - Contact Phone: (410) 246-6810[12](index=12&type=chunk) - Contact Email: LAllega@underarmour.com[12](index=12&type=chunk)

Core Insights - Under Armour reported its unaudited financial results for the first quarter of fiscal 2026, ending June 30, 2025, showing a revenue decline of 4.2% year-over-year to $1.134 billion [5][13][15]. Financial Performance - The company experienced a gross margin increase of 70 basis points to 48.2%, attributed to favorable foreign exchange, pricing, and product mix, despite higher supply chain costs [5][13]. - Selling, general, and administrative expenses decreased by 37% to $530 million, with adjusted expenses down 6% to $522 million, excluding transformation expenses [5][13]. - The net loss for the quarter was $3 million, with an adjusted net income of $9 million, leading to a diluted loss per share of $0.01 and adjusted diluted earnings per share of $0.02 [5][13][26][28]. Revenue Breakdown - North American revenue decreased by 5% to $670 million, while international revenue declined by 1% to $467 million [5][14]. - Within international markets, EMEA revenue increased by 10%, while Asia-Pacific and Latin America saw declines of 10% and 15%, respectively [5][14]. - Apparel revenue decreased by 1% to $747 million, footwear revenue fell by 14% to $266 million, and accessories revenue increased by 8% to $100 million [5][16]. Restructuring Plan - Under Armour's restructuring plan, initiated in May 2024, is expected to cost between $140 million and $160 million, with $71 million in restructuring and impairment charges recorded by the end of Q1 fiscal 2026 [4][5]. - The company anticipates recognizing the remaining charges by the end of fiscal 2026 [4]. Outlook - For the second quarter of fiscal 2026, revenue is expected to decline by 6% to 7%, with a projected low-double-digit percent decrease in North America and high-single-digit percent growth in EMEA [6][11]. - Gross margin is anticipated to decline by 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix [6][11]. Cash and Liquidity - Cash and cash equivalents totaled $911 million, including $400 million raised from senior notes during the quarter, which will be used to manage upcoming debt obligations [5][19]. Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, headquartered in Baltimore, Maryland [9].

Wall Street analysts forecast that Under Armour (UAA) will report quarterly earnings of $0.03 per share in its upcoming release, pointing to a year-over-year increase of 200%. It is anticipated that revenues will amount to $1.13 billion, exhibiting a decrease of 4.3% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timef ...

Company Overview - Under Armour (UAA) is expected to report a year-over-year increase in earnings of +200% with an EPS of $0.03, despite a revenue decline of 4.3% to $1.13 billion for the quarter ended June 2025 [3][12] - The earnings report is scheduled for release on August 8, and the actual results will significantly influence the stock price [2][3] Earnings Estimates and Trends - The consensus EPS estimate has been revised 0.76% lower over the last 30 days, indicating a reassessment by analysts [4] - Under Armour's Earnings ESP (Expected Surprise Prediction) stands at +13.79%, suggesting a more optimistic outlook from analysts compared to the consensus estimate [12] Historical Performance - In the last reported quarter, Under Armour had a surprise of +11.11%, posting a loss of -$0.08 per share against an expected loss of -$0.09 [13] - The company has beaten consensus EPS estimates in each of the last four quarters [14] Comparison with Industry Peers - In the Zacks Textile - Apparel industry, Ralph Lauren (RL) is expected to post earnings of $3.45 per share, reflecting a year-over-year increase of +27.8% and revenue growth of 8.8% to $1.65 billion [18][19] - Ralph Lauren's Earnings ESP is +0.75% with a Zacks Rank of 2 (Buy), indicating a strong likelihood of beating the consensus EPS estimate [20]

Core Viewpoint - Under Armour, Inc. is set to report its first quarter fiscal 2026 results on August 8, 2025, with a conference call scheduled to discuss the results and strategic progress [1]. Company Overview - Under Armour, Inc. is headquartered in Baltimore, Maryland, and is recognized as a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [2]. - The company's products are designed to empower human performance, with a focus on innovation to enhance athletic capabilities [2].

Core Insights - Deckers Outdoor Corporation (DECK) is experiencing significant growth driven by its brands HOKA and UGG, while Under Armour, Inc. (UAA) is transforming into a premium athletic brand [1] - The competitive landscape raises questions about which stock offers better upside potential for investors [1] Deckers Outdoor Corporation (DECK) - Deckers is focusing on high-margin markets, with fiscal 2025 net sales reaching $4.98 billion, a 16.3% year-over-year increase [2] - Projected first-quarter revenues for fiscal 2026 are between $890 million and $910 million, with HOKA expected to grow in low-double digits and UGG in mid-single digits [2] - Product innovation is key, with strong demand for updated HOKA models and new UGG hybrid products [3] - The company is expanding its omni-channel presence, balancing growth between wholesale and direct-to-consumer (DTC) channels, with international markets outperforming [4] - Despite record results in fiscal 2025, DECK faces challenges from new tariffs potentially adding costs of up to $150 million in fiscal 2026 [5] - Gross margin is expected to decline from 57.9% in fiscal 2025, with a projected contraction of 210 basis points for fiscal 2026 [6] - SG&A costs are anticipated to grow faster than revenues, leading to a decline in earnings per share to 62-67 cents from 75 cents in the prior year [8] - DECK's stock has dropped 13.6% over the past three months due to margin pressures and cautious guidance [20] Under Armour, Inc. (UAA) - Under Armour is enhancing its DTC channel by focusing on premium pricing, resulting in double-digit growth in average unit retail in fiscal 2025 [10] - The brand's loyalty program, with 28 million members, significantly contributes to U.S. DTC revenues [11] - EMEA region is a strong performer, with plans for expansion into France, Spain, and Germany in fiscal 2026 [12] - UAA recorded a 170-basis-point increase in gross margin in fiscal 2025, with expectations for further margin gains in fiscal 2026 [13][14] - The company is targeting $75 million in annualized savings by the end of fiscal 2026 through cost optimization [15] - Despite expected revenue declines of 4-5% in the first quarter of fiscal 2026, UAA is focused on long-term brand elevation and operational discipline [16][17] - UAA's stock has gained 5.5% over the past three months, driven by improving margins and premiumization efforts [20] Comparative Analysis - The Zacks Consensus Estimate for DECK suggests a 7.6% growth in sales but a 4.4% decline in earnings per share for fiscal 2026 [18] - UAA's estimates indicate a 2.1% decline in sales but a 9.7% growth in earnings per share for fiscal 2026 [19] - DECK is trading at a forward P/S multiple of 2.77, while UAA's is at 0.57, indicating UAA may offer better value [22] - Under Armour is viewed as a better investment case due to its strategic shift towards premiumization and disciplined cost control [25][26]

Core Viewpoint - Under Armour, Inc. has announced a private offering of $400 million in Senior Notes with a 7.250% interest rate due in 2030, expected to close on June 23, 2025 [1][2] Group 1: Offering Details - The Senior Notes will be senior, unsecured obligations of Under Armour, with interest paid semiannually [2] - The offering is exempt from registration under the Securities Act of 1933 [1][4] Group 2: Use of Proceeds - Under Armour plans to use the net proceeds from the offering, along with other funds, to redeem or retire $600 million of its outstanding 3.25% Senior Notes due in 2026 within 60 days of the offering's closing [3][6] Group 3: Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, aimed at enhancing human performance [8]

Core Insights - Under Armour, Inc. (UAA) reported a gross margin of 46.7% for Q4 fiscal 2025, a year-over-year increase of 170 basis points, driven by lower product and freight costs, reduced discounting, and improved royalty terms [1][2][3] Financial Performance - For fiscal 2025, the gross margin was 47.9%, up 180 basis points from the previous year, attributed to reduced supply-chain costs and strategic discount reductions [3] - The company anticipates a gross margin expansion of 40-60 basis points in Q1 fiscal 2026, supported by favorable product mix and continued supply-chain efficiencies [5] Strategic Initiatives - Under Armour is focusing on "higher quality revenue" and regaining pricing power by reducing reliance on markdowns, which is central to its brand elevation strategy [4] - The ongoing restructuring program has led to $89 million in transformation charges but yielded $35 million in savings for fiscal 2025, with expectations of reaching a $75 million annualized cost-saving run-rate by the end of fiscal 2026 [7][9] Cost Management - Selling, general and administrative (SG&A) expenses are projected to decline by 40% from the prior-year quarter, reflecting disciplined spending and enhanced productivity [8][9] - The combination of restructuring-driven savings and tighter cost control positions Under Armour to support gross margin gains and improve overall profitability [9] Market Performance - UAA shares gained 0.8% in the past month, outperforming the Zacks Textile – Apparel industry's decline of 16.5% and the broader Consumer Discretionary sector's performance [10]