[Executive Summary & Business Overview](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Overview) This section outlines Under Armour's Q1 FY2026 performance, emphasizing management's strategic focus on brand strengthening and product innovation [Management Commentary](index=1&type=section&id=Management%20Commentary) Under Armour's CEO reported Q1 results met expectations amid transformation, focusing on premium products and brand strengthening despite market uncertainty - Quarterly results met or exceeded expectations while the company undergoes a significant transformation[2](index=2&type=chunk) - Strategic focus is on enhancing brand positioning with premium products, increasing average selling prices through innovation, and optimizing top-volume programs[2](index=2&type=chunk) [First Quarter Fiscal 2026 Financial Performance](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Performance) Under Armour's Q1 FY2026 saw a 4% revenue decline to $1.1 billion, with mixed financial results and an increase in cash and inventories [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q1 FY2026 saw a 4% revenue decline to $1.1 billion, with GAAP operating income of $3 million and net loss of $3 million, while gross margin improved to 48.2% Q1 FY2026 Key Financial Metrics | Metric | Q1 FY2026 | Change (YoY) | | :--- | :--- | :--- | | **Revenue** | $1.1 billion | -4% | | **Gross Margin** | 48.2% | +70 bps | | **Operating Income** | $3 million | N/A (vs. loss) | | **Adjusted Operating Income** | $24 million | +204.5% | | **Net Loss** | $3 million | N/A (vs. larger loss) | | **Adjusted Net Income** | $9 million | +148.0% | | **Diluted EPS** | -$0.01 | N/A (vs. -$0.70) | | **Adjusted Diluted EPS** | $0.02 | +100% | - Gross margin increased to **48.2%** primarily due to favorable foreign exchange, pricing, and product mix, which was partially offset by unfavorable channel mix and higher supply chain costs[3](index=3&type=chunk) - SG&A expenses decreased significantly by **37% to $530 million**, mainly because the prior year included a large legal reserve expense, with adjusted SG&A decreasing by 6%[3](index=3&type=chunk) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue declined 4% to $1.1 billion, with North America down 5% and international down 1%, driven by decreases in wholesale, DTC eCommerce, and footwear Q1 FY2026 Revenue Breakdown by Geography | Region | Revenue (USD) | Change (YoY) | Currency Neutral Change | | :--- | :--- | :--- | :--- | | **North America** | $670 million | -5% | -5% | | **International** | $467 million | -1% | -2% | | *EMEA* | $249 million | +10% | +6% | | *Asia-Pacific* | $163 million | -10% | -10% | | *Latin America* | $55 million | -15% | -8% | Q1 FY2026 Revenue Breakdown by Channel & Product | Category | Revenue (USD) | Change (YoY) | | :--- | :--- | :--- | | **Wholesale** | $649 million | -5% | | **Direct-to-Consumer** | $463 million | -3% | | **Apparel** | $747 million | -1% | | **Footwear** | $266 million | -14% | | **Accessories** | $100 million | +8% | - Within the Direct-to-Consumer segment, revenue from owned and operated stores increased by **1%**, but this was offset by a **12% decline in eCommerce revenue**[3](index=3&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2025, cash and equivalents reached $911 million, inventories rose to $1.1 billion, and operating cash flow was $49 million, with no credit facility borrowings Key Balance Sheet Items (as of June 30, 2025) | Item | Amount (USD) | Change from Mar 31, 2025 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $911.0 million | +$409.6 million | | **Inventories** | $1,141.8 million | +$196.0 million | | **Total Assets** | $4,865.2 million | +$564.3 million | | **Total Liabilities** | $2,990.8 million | +$580.2 million | - The company raised **$400 million in senior notes** during the quarter, intending to use the proceeds to retire $600 million in senior notes due June 2026[5](index=5&type=chunk) - Net cash provided by operating activities was **$48.9 million**, a decrease from $153.0 million in the prior year's quarter, primarily due to changes in operating assets and liabilities[26](index=26&type=chunk) [Fiscal 2025 Restructuring Plan](index=2&type=section&id=Fiscal%202025%20Restructuring%20Plan) This section details the Fiscal 2025 Restructuring Plan, outlining its estimated costs and the charges incurred to date by Q1 FY2026 [Restructuring Plan Update](index=2&type=section&id=Restructuring%20Plan%20Update) The Fiscal 2025 Restructuring Plan, estimated at $140-$160 million, has incurred $110 million in charges by Q1 FY2026, with remaining charges expected by end of FY2026 Restructuring Plan Costs (as of Q1 FY2026) | Metric | Amount (USD) | | :--- | :--- | | **Total Estimated Cost** | $140M - $160M | | **Total Charges Incurred to Date** | $110 million | | *Restructuring & Impairment Charges* | $71 million | | *Other Transformational Expenses* | $39 million | | **Cash-Related Charges Incurred** | $65 million | | **Non-Cash-Related Charges Incurred** | $45 million | - The company anticipates recognizing the remaining charges associated with the restructuring plan by the end of fiscal 2026[4](index=4&type=chunk) [Second Quarter Fiscal 2026 Outlook](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Outlook) This section provides Under Armour's Q2 FY2026 guidance, projecting revenue decline, gross margin compression, and an operating loss due to market headwinds [Q2 FY2026 Guidance](index=2&type=section&id=Q2%20FY2026%20Guidance) Q2 FY2026 outlook projects a 6-7% revenue decline, a 340-360 bps gross margin drop due to tariffs, and a GAAP operating loss of $10 million to breakeven Q2 FY2026 Outlook | Metric | Guidance | | :--- | :--- | | **Revenue** | Decline 6% to 7% | | **Gross Margin** | Decline 340 to 360 bps | | **Operating Income (Loss)** | ($10) million to $0 million | | **Adjusted Operating Income** | $30 million to $40 million | | **Diluted Loss Per Share** | ($0.07) to ($0.08) | | **Adjusted Diluted EPS** | $0.01 to $0.02 | - The expected gross margin decline is primarily attributed to supply chain headwinds from tariffs and an unfavorable channel mix[6](index=6&type=chunk) - Adjusted SG&A is expected to grow at a high-single-digit rate, driven by higher marketing investments compared to the prior year when spending was shifted to the second half[6](index=6&type=chunk) [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents Under Armour's Q1 FY2026 consolidated financial statements, including income, balance sheet, cash flow, non-GAAP reconciliations, and store count [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 net revenues were $1.134 billion, with gross profit at $546.5 million, resulting in an operating income of $3.3 million and a net loss of $2.6 million Q1 FY2026 Income Statement (in thousands) | Line Item | Q1 2025 (ended Jun 30) | Q1 2024 (ended Jun 30) | | :--- | :--- | :--- | | **Net revenues** | $1,134,068 | $1,183,665 | | **Gross profit** | $546,496 | $562,675 | | **Income (loss) from operations** | $3,323 | $(299,728) | | **Net income (loss)** | $(2,612) | $(305,426) | | **Diluted net income (loss) per share** | $(0.01) | $(0.70) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached $4.87 billion, with cash at $911 million and inventories at $1.14 billion, while total liabilities increased to $2.99 billion Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $910,985 | $501,361 | | **Inventories** | $1,141,829 | $945,836 | | **Total current assets** | $2,902,858 | $2,329,097 | | **Total assets** | $4,865,191 | $4,300,871 | | **Total current liabilities** | $1,895,375 | $1,109,143 | | **Total liabilities** | $2,990,762 | $2,410,593 | | **Total stockholders' equity** | $1,874,429 | $1,890,278 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2026 saw $48.9 million in operating cash, $35.4 million used in investing, and $387.3 million provided by financing, leading to a $410.1 million net cash increase Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | | :--- | :--- | | **Net cash provided by operating activities** | $48,852 | | **Net cash used in investing activities** | $(35,362) | | **Net cash provided by financing activities** | $387,303 | | **Net increase in cash** | $410,107 | | **Cash at end of period** | $925,158 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) Q1 FY2026 non-GAAP reconciliations show adjusted operating income of $24.4 million, adjusted net income of $8.6 million, and adjusted diluted EPS of $0.02, primarily excluding restructuring charges - Currency-neutral net revenue declined **4.4%** in Q1, slightly worse than the GAAP decline of 4.2%, indicating a small positive impact from foreign exchange[28](index=28&type=chunk) Q1 FY2026 GAAP to Non-GAAP Reconciliation | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | **Operating Income** | $3.3M | +$21.1M | $24.4M | | **Net Income (Loss)** | ($2.6M) | +$11.2M | $8.6M | | **Diluted EPS** | ($0.01) | +$0.03 | $0.02 | Q2 FY2026 Outlook GAAP to Non-GAAP Reconciliation | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | **Operating Income** | ($10M) - $0M | +$40M | $30M - $40M | | **Diluted EPS** | ($0.08) - ($0.07) | +$0.09 | $0.01 - $0.02 | [Company-Owned & Operated Door Count](index=14&type=section&id=Company-Owned%20%26%20Operated%20Door%20Count) As of June 30, 2025, Under Armour operated 442 stores globally, a net increase of one, with North American stores decreasing and international stores increasing Store Count as of June 30 | Region | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **North America** | 195 | 200 | -5 | | **International** | 247 | 241 | +6 | | **Total Doors** | **442** | **441** | **+1** |

[Executive Summary & Strategic Overview](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Overview) [Company Overview & Strategic Direction](index=1&type=section&id=Company%20Overview%20%26%20Strategic%20Direction) Under Armour is executing a strategic transformation to enhance brand credibility, innovation, and operational discipline - Under Armour is undergoing a bold transformation to sharpen its brand, emphasizing sports credibility, innovation, style, and operational discipline[2](index=2&type=chunk) - Strategic focus includes strengthening brand positioning with premium products, increasing average selling prices through innovative offerings, optimizing top-volume programs, and creating a more compelling full price-to-value proposition[2](index=2&type=chunk) [First Quarter Fiscal 2026 Financial Review](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Review) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) The company's Q1 FY26 revenue declined while gross margin improved, resulting in a significantly reduced net loss compared to the prior year Q1 Fiscal 2026 Key Financial Highlights | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :----------- | | Revenue | $1.1 billion | $1.18 billion | -4% (-4% currency neutral) | | Gross Margin | 48.2% | 47.5% | +70 bps | | Operating Income (GAAP) | $3 million | $(299.7) million | N/A | | Net Loss (GAAP) | $3 million | $(305.4) million | N/A | | Adjusted Net Income | $9 million | $3.7 million | N/A | | Diluted Loss Per Share (GAAP) | $(0.01) | $(0.70) | N/A | | Adjusted Diluted Earnings Per Share | $0.02 | $0.01 | N/A | - Gross margin increase was primarily due to favorable foreign exchange, pricing, and product mix, partially offset by an unfavorable channel mix and higher supply chain costs[3](index=3&type=chunk) [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Q1 FY26 revenue declined across most segments and channels, with footwear showing the most significant drop [Revenue by Geographic Segment](index=1&type=section&id=Revenue%20by%20Geographic%20Segment) North America and Asia-Pacific revenues declined, while the EMEA region was the only segment to report growth Q1 Fiscal 2026 Revenue by Geographic Segment | Segment | Revenue (2025, in millions) | % Change (YoY) | Currency Neutral % Change (YoY) | | :-------------- | :-------------------------- | :-------------- | :------------------------------ | | North America | $670 | -5% | -5.3% | | International | $467 | -1% | -2.2% | | EMEA | $248.6 | +10% | +6.0% | | Asia-Pacific | $163.4 | -10% | -10.3% | | Latin America | $54.6 | -15% | -7.7% | [Revenue by Distribution Channel](index=1&type=section&id=Revenue%20by%20Distribution%20Channel) Both wholesale and direct-to-consumer channels experienced revenue declines, with a notable drop in eCommerce sales Q1 Fiscal 2026 Revenue by Distribution Channel | Channel | Revenue (2025, in millions) | % Change (YoY) | | :---------------- | :-------------------------- | :-------------- | | Wholesale | $649 | -5% | | Direct-to-consumer | $463 | -3% | | Owned & Operated Stores | N/A | +1% | | eCommerce | N/A | -12% | - eCommerce revenue accounted for **31%** of the total direct-to-consumer business for the quarter[3](index=3&type=chunk) [Revenue by Product Category](index=1&type=section&id=Revenue%20by%20Product%20Category) Footwear revenue declined significantly and apparel saw a slight decrease, while accessories revenue grew Q1 Fiscal 2026 Revenue by Product Category | Product Category | Revenue (2025, in millions) | % Change (YoY) | | :--------------- | :-------------------------- | :-------------- | | Apparel | $747 | -1% | | Footwear | $266 | -14% | | Accessories | $100 | +8% | [Operating Income by Segment](index=7&type=section&id=Operating%20Income%20by%20Segment) Operating income decreased in North America and Latin America but improved in the EMEA and Asia-Pacific segments Q1 Fiscal 2026 Operating Income by Segment | Segment | Operating Income (2025, in thousands) | % of Net Revenues (2025) | Operating Income (2024, in thousands) | % of Net Revenues (2024) | | :-------------- | :------------------------------------ | :----------------------- | :------------------------------------ | :----------------------- | | North America | $121,437 | 18.1% | $147,889 | 20.9% | | EMEA | $39,643 | 15.9% | $20,456 | 9.0% | | Asia-Pacific | $14,703 | 9.0% | $9,935 | 5.5% | | Latin America | $6,606 | 12.1% | $15,171 | 23.6% | [Non-GAAP Adjustments & Reconciliations (Q1 FY26)](index=11&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q1%20FY26)) Adjusted financial measures for Q1 FY26 exclude restructuring charges and litigation reserves to clarify core operational performance Q1 Fiscal 2026 Adjusted Financial Metrics | Metric | GAAP (2025, in thousands) | Adjusted (2025, in thousands) | GAAP (2024, in thousands) | Adjusted (2024, in thousands) | | :-------------------------------------- | :------------------------ | :-------------------------- | :------------------------ | :-------------------------- | | Selling, General & Administrative Expenses | $530,345 | $522,086 | $837,317 | $554,660 | | Operating Income (Loss) | $3,323 | $24,410 | $(299,728) | $8,015 | | Net Income (Loss) | $(2,612) | $8,568 | $(305,426) | $3,656 | | Diluted EPS | $(0.01) | $0.02 | $(0.70) | $0.01 | [Fiscal 2025 Restructuring Plan](index=2&type=section&id=Fiscal%202025%20Restructuring%20Plan) [Restructuring Plan Details](index=2&type=section&id=Restructuring%20Plan%20Details) The company initiated a restructuring plan to improve efficiencies, with total estimated costs between $140 million and $160 million - Restructuring plan announced in May 2024 aims to improve financial and operational efficiencies[4](index=4&type=chunk) - Estimated total cost of the plan is between **$140 million and $160 million**, with up to **$90 million** cash-related and **$70 million** non-cash charges[4](index=4&type=chunk) - As of Q1 FY26, **$110 million** in charges have been recorded, with **$65 million** cash-related and **$45 million** non-cash-related[4](index=4&type=chunk) - Remaining charges are anticipated to be recognized by the end of fiscal 2026[4](index=4&type=chunk) [Second Quarter Fiscal 2026 Outlook](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Outlook) [Financial Projections](index=2&type=section&id=Financial%20Projections) The Q2 FY26 outlook projects a revenue decline and significant gross margin compression, leading to a potential operating loss - Revenue is expected to decline **6-7%** in Q2 FY26[6](index=6&type=chunk) - North America revenue is anticipated to decrease by a **low-double-digit percentage**, while EMEA is projected to grow at a **high-single-digit rate**, and Asia-Pacific to decline by a **low-teens percentage**[6](index=6&type=chunk) - Gross margin is expected to decline **340-360 basis points**, mainly due to supply chain headwinds and unfavorable channel mix[6](index=6&type=chunk) - Operating income is expected to range from a **$10 million loss to $0 million**, with adjusted operating income forecasted between **$30 million and $40 million**[6](index=6&type=chunk) - Diluted loss per share is expected to range from **$0.07 to $0.08**, with adjusted diluted earnings per share anticipated between **$0.01 and $0.02**[6](index=6&type=chunk) [Non-GAAP Adjustments & Reconciliations (Q2 FY26 Outlook)](index=13&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q2%20FY26%20Outlook)) The Q2 FY26 outlook is adjusted for restructuring charges to provide a clearer view of expected core operating performance Q2 Fiscal 2026 Adjusted Outlook | Metric | GAAP Low Estimate | GAAP High Estimate | Adjusted Low Estimate | Adjusted High Estimate | | :-------------------------- | :---------------- | :----------------- | :-------------------- | :--------------------- | | Operating Income (Loss) | $(10) million | $0 million | $30 million | $40 million | | Diluted Loss Per Share | $(0.08) | $(0.07) | $0.01 | $0.02 | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 FY26 statement of operations shows a significantly narrowed net loss compared to the prior year, driven by lower SG&A expenses Condensed Consolidated Statements of Operations (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $1,134,068 | $1,183,665 | | Cost of goods sold | $587,572 | $620,990 | | Gross profit | $546,496 | $562,675 | | Selling, general and administrative expenses | $530,345 | $837,317 | | Restructuring charges | $12,828 | $25,086 | | Income (loss) from operations | $3,323 | $(299,728) | | Net income (loss) | $(2,612) | $(305,426) | | Diluted net income (loss) per share | $(0.01) | $(0.70) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased as of June 30, 2025, primarily due to higher cash, inventories, and new debt maturities Condensed Consolidated Balance Sheets (Unaudited; in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Total assets | $4,865,191 | $4,300,871 | | Cash and cash equivalents | $910,985 | $501,361 | | Inventories | $1,141,829 | $945,836 | | Total liabilities | $2,990,762 | $2,410,593 | | Current maturities of long-term debt | $599,757 | $0 | | Total stockholders' equity | $1,874,429 | $1,890,278 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations decreased, but a significant inflow from financing activities led to a substantial increase in total cash Condensed Consolidated Statements of Cash Flows (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $48,852 | $152,975 | | Net cash provided by (used in) investing activities | $(35,362) | $4,319 | | Net cash provided by (used in) financing activities | $387,303 | $(128,220) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $410,107 | $26,244 | | Cash, cash equivalents and restricted cash (End of period) | $925,158 | $903,161 | - Proceeds from long-term debt and revolving credit facility totaled **$400 million** in Q1 FY26[26](index=26&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Non-GAAP Financial Information (General Explanation)](index=3&type=section&id=Non-GAAP%20Financial%20Information%20(General%20Explanation)) The company utilizes non-GAAP measures to exclude currency fluctuations and restructuring charges for a clearer view of operational performance - Non-GAAP measures like 'currency-neutral' and 'adjusted' results are used to provide valuable information for comparing operational results across different periods[8](index=8&type=chunk) - Currency-neutral data eliminates fluctuations in foreign currency exchange rates, while adjusted measures exclude effects of the fiscal year 2025 restructuring plan and associated charges[8](index=8&type=chunk) [Forward-Looking Statements & Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) The report's forward-looking statements are subject to risks including economic conditions, competition, and supply chain issues - Forward-looking statements relate to expectations, beliefs, projections, plans, and strategies concerning matters that are not historical facts[10](index=10&type=chunk) - Actual activities or results may differ significantly due to risks, uncertainties, assumptions, and changes in circumstances[10](index=10&type=chunk) - Important factors that could cause material differences include changes in economic/market conditions, global events, trade environment, increased competition, fluctuations in raw material costs, ability to execute strategies, and impacts from litigation[11](index=11&type=chunk) [Company-Owned & Operated Door Count](index=14&type=section&id=Company-Owned%20%26%20Operated%20Door%20Count) The total number of company-owned and operated doors remained stable year-over-year at 442 globally Company-Owned & Operated Door Count | Region/Type | June 30, 2025 | June 30, 2024 | | :------------------ | :------------ | :------------ | | North America total | 195 | 200 | | International total | 247 | 241 | | Total doors | 442 | 441 | [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) A conference call and webcast were held on August 8, 2025, to discuss the first quarter fiscal 2026 results - The conference call for Q1 FY26 results was held on August 8, 2025, at approximately 8:30 a.m. Eastern Time[7](index=7&type=chunk) - The call was streamed live and is available for replay on the company's investor relations website: https://about.underarmour.com/investor-relations/financials[7](index=7&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations inquiries are provided - Contact for Finance & Capital Markets: Lance Allega, Senior Vice President[12](index=12&type=chunk) - Contact Phone: (410) 246-6810[12](index=12&type=chunk) - Contact Email: LAllega@underarmour.com[12](index=12&type=chunk)

Core Insights - Under Armour reported its unaudited financial results for the first quarter of fiscal 2026, ending June 30, 2025, showing a revenue decline of 4.2% year-over-year to $1.134 billion [5][13][15]. Financial Performance - The company experienced a gross margin increase of 70 basis points to 48.2%, attributed to favorable foreign exchange, pricing, and product mix, despite higher supply chain costs [5][13]. - Selling, general, and administrative expenses decreased by 37% to $530 million, with adjusted expenses down 6% to $522 million, excluding transformation expenses [5][13]. - The net loss for the quarter was $3 million, with an adjusted net income of $9 million, leading to a diluted loss per share of $0.01 and adjusted diluted earnings per share of $0.02 [5][13][26][28]. Revenue Breakdown - North American revenue decreased by 5% to $670 million, while international revenue declined by 1% to $467 million [5][14]. - Within international markets, EMEA revenue increased by 10%, while Asia-Pacific and Latin America saw declines of 10% and 15%, respectively [5][14]. - Apparel revenue decreased by 1% to $747 million, footwear revenue fell by 14% to $266 million, and accessories revenue increased by 8% to $100 million [5][16]. Restructuring Plan - Under Armour's restructuring plan, initiated in May 2024, is expected to cost between $140 million and $160 million, with $71 million in restructuring and impairment charges recorded by the end of Q1 fiscal 2026 [4][5]. - The company anticipates recognizing the remaining charges by the end of fiscal 2026 [4]. Outlook - For the second quarter of fiscal 2026, revenue is expected to decline by 6% to 7%, with a projected low-double-digit percent decrease in North America and high-single-digit percent growth in EMEA [6][11]. - Gross margin is anticipated to decline by 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix [6][11]. Cash and Liquidity - Cash and cash equivalents totaled $911 million, including $400 million raised from senior notes during the quarter, which will be used to manage upcoming debt obligations [5][19]. Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, headquartered in Baltimore, Maryland [9].

Wall Street analysts forecast that Under Armour (UAA) will report quarterly earnings of $0.03 per share in its upcoming release, pointing to a year-over-year increase of 200%. It is anticipated that revenues will amount to $1.13 billion, exhibiting a decrease of 4.3% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timef ...

Company Overview - Under Armour (UAA) is expected to report a year-over-year increase in earnings of +200% with an EPS of $0.03, despite a revenue decline of 4.3% to $1.13 billion for the quarter ended June 2025 [3][12] - The earnings report is scheduled for release on August 8, and the actual results will significantly influence the stock price [2][3] Earnings Estimates and Trends - The consensus EPS estimate has been revised 0.76% lower over the last 30 days, indicating a reassessment by analysts [4] - Under Armour's Earnings ESP (Expected Surprise Prediction) stands at +13.79%, suggesting a more optimistic outlook from analysts compared to the consensus estimate [12] Historical Performance - In the last reported quarter, Under Armour had a surprise of +11.11%, posting a loss of -$0.08 per share against an expected loss of -$0.09 [13] - The company has beaten consensus EPS estimates in each of the last four quarters [14] Comparison with Industry Peers - In the Zacks Textile - Apparel industry, Ralph Lauren (RL) is expected to post earnings of $3.45 per share, reflecting a year-over-year increase of +27.8% and revenue growth of 8.8% to $1.65 billion [18][19] - Ralph Lauren's Earnings ESP is +0.75% with a Zacks Rank of 2 (Buy), indicating a strong likelihood of beating the consensus EPS estimate [20]

Core Viewpoint - Under Armour, Inc. is set to report its first quarter fiscal 2026 results on August 8, 2025, with a conference call scheduled to discuss the results and strategic progress [1]. Company Overview - Under Armour, Inc. is headquartered in Baltimore, Maryland, and is recognized as a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [2]. - The company's products are designed to empower human performance, with a focus on innovation to enhance athletic capabilities [2].

Core Insights - Under Armour, Inc. (UAA) reported a gross margin of 46.7% for Q4 fiscal 2025, a year-over-year increase of 170 basis points, driven by lower product and freight costs, reduced discounting, and improved royalty terms [1][2][3] Financial Performance - For fiscal 2025, the gross margin was 47.9%, up 180 basis points from the previous year, attributed to reduced supply-chain costs and strategic discount reductions [3] - The company anticipates a gross margin expansion of 40-60 basis points in Q1 fiscal 2026, supported by favorable product mix and continued supply-chain efficiencies [5] Strategic Initiatives - Under Armour is focusing on "higher quality revenue" and regaining pricing power by reducing reliance on markdowns, which is central to its brand elevation strategy [4] - The ongoing restructuring program has led to $89 million in transformation charges but yielded $35 million in savings for fiscal 2025, with expectations of reaching a $75 million annualized cost-saving run-rate by the end of fiscal 2026 [7][9] Cost Management - Selling, general and administrative (SG&A) expenses are projected to decline by 40% from the prior-year quarter, reflecting disciplined spending and enhanced productivity [8][9] - The combination of restructuring-driven savings and tighter cost control positions Under Armour to support gross margin gains and improve overall profitability [9] Market Performance - UAA shares gained 0.8% in the past month, outperforming the Zacks Textile – Apparel industry's decline of 16.5% and the broader Consumer Discretionary sector's performance [10]

Group 1 - Under Armour intends to offer $400 million aggregate principal amount of Senior Notes due 2030 in a private offering [1][2] - The Notes will be senior, unsecured obligations and will bear interest semiannually [2] - The net proceeds from the Proposed Offering will be used to redeem all $600 million of outstanding 3.25% Senior Notes due 2026 [3] Group 2 - The offering is exempt from registration under the Securities Act of 1933 and will be made only to qualified institutional buyers [4][5] - The announcement does not constitute a notice of redemption for the 2026 Notes [6] - Under Armour is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [8]

Core Viewpoint - Under Armour's shares have increased by approximately 11.8% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Estimates Movement - Estimates for Under Armour have been revised upward over the past month, with the consensus estimate shifting by 1218.18% due to these changes [2] VGM Scores - Under Armour currently holds a poor Growth Score of F and a similar score of F for momentum, while receiving a D grade for value, placing it in the bottom 40% for this investment strategy; the overall aggregate VGM Score is F [3] Outlook - The upward trend in estimates appears promising, with Under Armour holding a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [4]

Core Viewpoint - Lululemon is facing significant challenges in maintaining growth, particularly in its core North American market, leading to a substantial drop in stock price after disappointing earnings and lowered guidance [3][4][5]. Group 1: Financial Performance - Lululemon's first-quarter revenue in North America grew by only 3% year-over-year, with comparable sales down by 2%, indicating a decline in customer retention [5][6]. - The company's net profit for the quarter decreased by 2.13% to $315 million, marking the first decline since the pandemic's impact in 2020 [6]. - Analysts have expressed skepticism about Lululemon's ability to recover in North America, with Morgan Stanley cutting its price target from $389 to $303 per share [7]. Group 2: Market Dynamics - The brand is losing its core customers, particularly as U.S. middle-class consumers reduce spending on high-end athletic apparel [6][11]. - In China, while revenue grew by 21%, comparable sales only increased by 7%, suggesting a slowdown in growth despite the market's overall performance [9][12]. - Lululemon's expansion plans have fallen short, with only three new stores opened in China this year, compared to an initial target of 40-50 [9]. Group 3: Competitive Landscape - Lululemon faces increasing competition from brands like Alo Yoga, Vuori, and Gymshark, as well as established players like Nike and Adidas, which are capturing market share among younger consumers [11][12]. - The brand's recent shift towards a more fashion-oriented image has diluted its core identity, leading to concerns about product differentiation and market positioning [18]. Group 4: Strategic Responses - To mitigate financial impacts, Lululemon is optimizing procurement and negotiating with suppliers to reduce costs, while also planning to raise prices on some products [12][13]. - The company is attempting to diversify its product offerings, including men's apparel and footwear, but has struggled to achieve significant growth in these categories [14][16].