Core Insights - Under Armour, Inc. reported third-quarter fiscal 2025 results with revenues and earnings exceeding the Zacks Consensus Estimate, although both metrics decreased year over year [1][3] - The company has refined its brand focus and updated its product strategy, which has positively impacted performance and led to an improved fiscal 2025 outlook [1] Financial Performance - Adjusted earnings were 8 cents per share, surpassing the Zacks Consensus Estimate of 3 cents, but down from 19 cents in the prior year [3] - Net revenues reached $1,401 million, exceeding the consensus estimate of $1,338 million, but decreased by 5.7% year over year [3] - Wholesale revenues fell 1% to $704.8 million, while direct-to-consumer revenues declined 9.1% to $672.9 million [4] Revenue Breakdown - Apparel revenues decreased 5% to $966.1 million, exceeding the consensus estimate of $909.2 million [5] - Footwear revenues dropped 9% to $301.2 million, below the consensus estimate of $303.6 million [5] - Revenues from Accessories rose 5.7% to $110.4 million, outperforming the consensus estimate of $98 million [5] Geographic Performance - North America revenues declined 7.8% to $843.6 million, exceeding the Zacks Consensus Estimate of $790.7 million [6] - International revenues decreased 1.4% to $558 million, with EMEA revenues increasing 4.9% to $297.9 million [7][6] Margin and Expenses - Gross profit was $665.2 million, down 0.8% year over year, but gross margin expanded 240 basis points to 47.5% [8] - Adjusted selling, general, and administrative expenses rose 5% to $605.5 million, primarily due to higher marketing expenses [9] Financial Position - The company ended the quarter with cash and cash equivalents of $726.9 million and long-term debt of $595.2 million [10] - Under Armour repurchased $25 million worth of its class C common stock, retiring 2.8 million shares [11] Fiscal 2025 Outlook - Revenues are expected to decline 10%, an improvement from the previous forecast of a low-double-digit percentage decline [14] - Adjusted operating income is projected between $185 million and $195 million, an increase from the earlier estimate [17] - Loss per share is expected between 48 cents and 50 cents, with adjusted earnings per share forecasted between 28 cents and 30 cents [18]
Under Armour Q3 Earnings Beat, Gross Margin Rises Y/Y, FY25 View Up