Revenue 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 for the same period in 2024[22]. - The company's total net revenue declined by 9.4% year-over-year, 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 significant 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 the same period of 2024[20]. - 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 the same period of 2024[20]. Expenses and Restructuring - 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]. - Adjusted selling, general and administrative expenses for the year were $2.28 billion, down from $2.60 billion in the previous year[38]. - The company incurred restructuring charges of $15,726 for the three months ended March 31, 2025[20]. Stock Repurchase and Cash Position - 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]. - Under Armour's cash and cash equivalents decreased to $515.1 million by the end of the period, down from $876.9 million at the beginning[32]. Future Outlook - For the first quarter of fiscal 2026, revenue is expected to decrease 4% to 5% compared to the same period last year[13]. - The company anticipates an operating income of $5 million to $15 million for the first quarter of fiscal 2026, with adjusted operating income projected between $20 million and $30 million[13]. - The company plans to achieve an adjusted income from operations of between $20 million and $30 million for the quarter ending June 30, 2025[48]. Inventory and Assets - Total current assets decreased to $2,329,097 as of March 31, 2025, down from $2,863,682 as of March 31, 2024[30]. - The company reported a decrease in inventory to $945,836 as of March 31, 2025, from $958,495 as of March 31, 2024[30]. - Total liabilities decreased to $2,410,593 as of March 31, 2025, compared to $2,607,448 as of March 31, 2024[30]. Store Operations - As of March 31, 2025, Under Armour operated a total of 441 doors, slightly up from 440 doors in the previous year[51].
Under Armour(UAA) - 2025 Q4 - Annual Results