Under Armour(US:UA)2025-05-13 11:37Revenue Performance - Fourth quarter revenue decreased 11% to $1.2 billion, with North American revenue down 11% to $689 million and international revenue down 13% to $489 million[3] - Full year revenue decreased 9% to $5.2 billion, with North American revenue down 11% to $3.1 billion and international revenue down 6% to $2.1 billion[8] - Net revenues for the three months ended March 31, 2025, were $1,180,583, a decrease of 11.4% compared to $1,332,197 in the same period of 2024[22] - Total net revenue for the year declined by 9.4% according to GAAP, with a currency-neutral net revenue growth of -8.9%[35] - North America experienced a GAAP net revenue decline of 11.4%, while the Asia-Pacific region saw a decline of 13.5%[35] Profitability and Loss - Operating loss for the fourth quarter was $72 million, with an adjusted operating loss of $36 million after excluding transformation and restructuring expenses[3] - Adjusted net income for the full year was $135 million, while the net loss was $201 million[8] - The company reported a net loss of $67,457 for the three months ended March 31, 2025, compared to a net income of $6,568 in 2024[22] - For the year ended March 31, 2025, Under Armour reported a net loss of $201.3 million compared to a net income of $232.0 million for the previous year[32] - The GAAP diluted net loss per share for the year was $0.47, while the adjusted diluted net income per share was $0.31[44] Gross Margin and Costs - Gross margin increased 170 basis points to 46.7%, driven by lower product and freight costs and reduced direct-to-consumer discounting[3] - Gross margin for the first quarter of fiscal 2026 is anticipated to increase by 40 to 60 basis points, driven by a favorable product mix and lower costs[13] - Gross profit for the three months ended March 31, 2025, was $550,782, representing a gross margin of 46.7%, compared to 45.0% in 2024[22] Restructuring and Charges - The company recognized $58 million in restructuring and impairment charges by the end of the fourth fiscal quarter of 2025, with total anticipated charges of $140 million to $160 million[7] - The company incurred restructuring charges of $15,726 for the three months ended March 31, 2025[22] - The company reported a significant increase in stock-based compensation, rising to $53.0 million from $43.0 million year-over-year[32] Share Repurchase and Stock Information - The company repurchased $25 million of Class C common stock in the fourth quarter, totaling 12.8 million shares repurchased for $90 million under a $500 million program[6] - The company repurchased $90.0 million in common stock during the year, compared to $75.0 million in the previous year[32] Future Expectations - For the first quarter of fiscal 2026, revenue is expected to decrease 4% to 5% compared to the same quarter last year[13] - Selling, general, and administrative expenses are expected to decrease approximately 40% compared to the first quarter of fiscal 2025, excluding last year's litigation settlement expense[13] - For the quarter ending June 30, 2025, the company expects adjusted income from operations to range between $20 million and $30 million[48] Asset and Liability Changes - Total current assets decreased to $2,329,097 as of March 31, 2025, from $2,863,682 in 2024[30] - Total liabilities decreased to $2,410,593 as of March 31, 2025, compared to $2,607,448 in 2024[30] - The company reported a significant decline in inventory levels, with inventories at $945,836 as of March 31, 2025, down from $958,495 in 2024[30] Segment Performance - North America segment revenues decreased by 10.7% to $689,399 for the three months ended March 31, 2025, from $771,870 in 2024[22] - Direct-to-consumer revenues fell by 15.1% to $386,110 for the three months ended March 31, 2025, compared to $454,690 in 2024[24] Store Count - Under Armour's total company-owned and operated doors decreased from 440 in 2024 to 441 in 2025, with North America total doors declining from 200 to 195[51]