Under Armour(US:UA) Nan Fang Du Shi Bao·2026-02-10 10:48Core Viewpoint - Under Armour reported its Q3 FY2026 financial results, showing adjusted earnings per share of $0.09, exceeding market expectations, and raised its full-year profit guidance, indicating early success of its restructuring plan [2] Group 1: Financial Performance - The company's quarterly revenue decreased by 5% year-over-year to $1.33 billion, marking nine consecutive quarters of negative growth [2] - North America, accounting for over 56% of total revenue, saw a significant sales decline of 10% to $757 million, primarily due to inventory destocking in wholesale channels and weaker foot traffic in physical retail [2][5] - The footwear segment, as the second-largest revenue source, experienced a 12% drop in revenue to $265 million, attributed to a transitional phase in its core basketball shoe line and slow product iteration in running shoes [3][5] Group 2: Regional Performance - In contrast to North America, international business showed positive signals with overall revenue growth of 3% to $577 million, driven by a 20% increase in Latin America and a 6% growth in the EMEA region [3][5] - The Asia-Pacific region, including China, saw a revenue decline of 5%, but the decrease was less severe compared to the previous year, indicating that strategic adjustments are beginning to take effect [3][5] Group 3: Strategic Adjustments - Under Armour has initiated targeted strategic adjustments in response to its core market challenges, including a reset plan led by founder Kevin Plank, focusing on reviving the Curry shoe line and refocusing on core men's apparel [5][6] - The reset plan is expected to take 18 months and involve an investment of $70 million to $90 million, aimed at overcoming development bottlenecks and achieving a turnaround [5][6] Group 4: Focus on China Market - Facing structural challenges in North America, Under Armour is shifting its strategic focus to international markets, particularly China, which is seen as a key growth area [7][9] - The company has made significant moves in China, including appointing a new vice president with extensive multinational experience and launching new product lines tailored to local consumer demands [9] - Under Armour is also enhancing its brand presence through partnerships with local athletes and opening innovative retail spaces to strengthen its market position in China [9]