Revenue Performance - Revenue decreased 5 percent to $1.3 billion, with North American revenue declining 8 percent to $792 million and international revenue growing 2 percent to $551 million[3] - Net revenues for the three months ended September 30, 2025, were $1,333,380, a decrease of 4.7% compared to $1,399,023 in the same period of 2024[17] - North America segment revenues decreased by 8.3% to $791,502 for the three months ended September 30, 2025, compared to $863,345 in 2024[17] - EMEA segment revenues increased by 12.2% to $317,679 for the three months ended September 30, 2025, compared to $283,178 in 2024[17] - Total net revenue growth (decline) for the six months ended September 30, 2025, was (4.5)%, with a currency-neutral net revenue decline of (5.2)%[29] Profitability Metrics - Gross margin declined by 250 basis points to 47.3 percent, primarily due to supply chain headwinds and increased tariffs[3] - Gross profit for the three months ended September 30, 2025, was $630,584, representing 47.3% of net revenues, down from 49.8% in 2024[17] - Operating income was $17 million, while adjusted operating income, excluding transformation expenses and restructuring charges, was $53 million[3] - Projected operating income for fiscal 2026 is expected to range from $19 million to $34 million, with adjusted operating income forecasted between $90 million and $105 million[7] - Adjusted income from operations for the six months ended September 30, 2025, was $77,806 thousand, compared to $174,077 thousand for the same period in 2024[33] Net Income and Loss - Net loss was $19 million, with adjusted net income reported at $15 million[3] - Net income for the three months ended September 30, 2025, was a loss of $18,814, compared to a net income of $170,382 in 2024[17] - For the six months ended September 30, 2025, the net income was $(21,426) thousand, compared to $(135,044) thousand for the same period in 2024, indicating an improvement[27] - The company reported an adjusted net income of $23,854 thousand for the six months ended September 30, 2025, compared to $134,770 thousand for the same period in 2024[35] Expenses - Selling, general, and administrative (SG&A) expenses increased 12 percent to $582 million, with adjusted SG&A expenses rising 9 percent to $577 million[3] - The company reported a restructuring charge of $31,906 for the three months ended September 30, 2025, compared to $3,212 in 2024[17] - Adjusted selling, general and administrative expenses for the six months ended September 30, 2025, were $1,099,274 thousand, compared to $1,084,730 thousand for the same period in 2024[31] Cash Flow and Financial Position - Cash and cash equivalents totaled $396 million, with inventory declining 6 percent to $1.0 billion[6] - Total current assets increased to $2,943,783 as of September 30, 2025, from $2,329,097 as of March 31, 2025[25] - Total liabilities rose to $3,043,800 as of September 30, 2025, compared to $2,410,593 as of March 31, 2025[25] - Cash flows from operating activities for the six months ended September 30, 2025, were $(20,978) thousand, an improvement from $(168,409) thousand in the same period of 2024[27] - Net cash provided by financing activities for the six months ended September 30, 2025, was $560,462 thousand, compared to $(129,392) thousand for the same period in 2024[27] Shareholder Actions and Future Outlook - The company repurchased $25 million of its Class C common stock, retiring 5.2 million shares as part of a $500 million share buyback program[4] - Fiscal 2026 outlook projects revenue to decrease 4 to 5 percent, with anticipated declines in North America and Asia-Pacific, and a high-single-digit percentage increase in EMEA[7] - Expected gross margin decline of 190 to 210 basis points, mainly due to higher U.S. tariffs and unfavorable channel mix[7] - The outlook for the year ending March 31, 2026, estimates adjusted income from operations to be between $90 million and $105 million[40] - The adjusted diluted net income per share for the year ending March 31, 2026, is projected to be between $0.03 and $0.05[41] Operational Metrics - The company maintained a total of 447 doors as of September 30, 2025, compared to 446 doors as of September 30, 2024[43] - Direct-to-consumer revenues decreased by 2.2% to $538,136 for the three months ended September 30, 2025, compared to $550,336 in 2024[19]
Under Armour(UAA) - 2026 Q2 - Quarterly Results