Revenue Performance - Third quarter revenue decreased 5% to $1.33 billion, with North America revenue declining 10% to $757 million and international revenue increasing 3% to $577 million[3]. - Fiscal 2026 revenue is expected to decline approximately 4%, with an 8% decline in North America and a 6% decline in Asia-Pacific[7]. - Net revenues for the three months ended December 31, 2025, were $1,327,761, a decrease of 5.2% compared to $1,401,039 in the same period of 2024[18]. - North America segment revenues decreased by 10.3% to $756,726 for the three months ended December 31, 2025, compared to $843,620 in 2024[18]. - Direct-to-consumer revenues decreased by 3.9% to $646,845 for the three months ended December 31, 2025, compared to $672,948 in 2024[20]. - The total net revenue growth (decline) for the nine months ended December 31, 2025, was (4.7)% according to GAAP, with a currency-neutral net revenue decline of (5.5)%[31]. Profitability and Loss - Gross margin declined 310 basis points to 44.4%, primarily due to higher tariffs and pricing headwinds[3]. - The company recorded a net loss of $431 million, including a $247 million valuation allowance on U.S. federal deferred tax assets[6]. - Diluted loss per share was $1.01, while adjusted diluted earnings per share was $0.09[6]. - Gross profit for the three months ended December 31, 2025, was $589,740, representing a gross margin of 44.4%, down from 47.5% in 2024[18]. - The company reported a net loss of $430,827 for the three months ended December 31, 2025, compared to a net income of $1,234 in 2024[18]. - Basic net loss per share for Class A, B, and C common stock was $(1.01) for the three months ended December 31, 2025, compared to $0.00 in 2024[18]. - For the nine months ended December 31, 2025, the net income was $(452,253) thousand, compared to $(133,810) thousand for the same period in 2024, indicating a significant decline[29]. - The adjusted income from operations for the nine months ended December 31, 2025, was $104,221 thousand, compared to $233,710 thousand in 2024[35]. - The company reported an adjusted net income of $60,736 thousand for the nine months ended December 31, 2025, down from $169,767 thousand in 2024[37]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses increased 4% to $665 million, but adjusted SG&A declined 7% to $563 million[3]. - SG&A expenses for fiscal 2026 are expected to decline at a low-double-digit rate, driven by lower marketing costs and restructuring savings[7]. - Adjusted selling, general and administrative expenses for the nine months ended December 31, 2025, were $1,662,599 thousand, a decrease from $1,690,252 thousand in 2024[33]. Future Outlook - Operating loss for fiscal 2026 is expected to be approximately $154 million, with adjusted operating income expected to be around $110 million[7]. - The company expects to recognize remaining restructuring charges by the end of fiscal 2026, with total costs of the restructuring plan now expected to be up to $255 million[5]. - The outlook for the year ending March 31, 2026, includes an estimated adjusted income from operations of approximately $110 thousand[42]. - The GAAP diluted net loss per share for the year ending March 31, 2026, is estimated to be between $(1.25) and $(1.24)[43]. Balance Sheet and Cash Flow - Total current assets increased to $2,989,031 as of December 31, 2025, from $2,329,097 as of March 31, 2025[26]. - Total liabilities rose to $3,194,924 as of December 31, 2025, compared to $2,410,593 as of March 31, 2025[26]. - The company reported a net cash provided by operating activities of $257,079 thousand for the nine months ended December 31, 2025, compared to $142,880 thousand in 2024[29]. - The net cash used in investing activities was $(673,703) thousand for the nine months ended December 31, 2025, compared to $(99,194) thousand in 2024[29]. Restructuring Charges - The company experienced a significant increase in restructuring charges, which amounted to $74,980 for the three months ended December 31, 2025, compared to $13,945 in 2024[18]. - The company-owned and operated door count increased to 450 as of December 31, 2025, from 448 in 2024, with North America total doors rising to 199[45].
Under Armour(UAA) - 2026 Q3 - Quarterly Results