Core Insights - Under Armour reported earnings per share of $0.09, exceeding the estimated loss of $0.015, and revenue of approximately $1.33 billion, surpassing the estimated $1.16 billion [1][5] Group 1: Financial Performance - The company's third-quarter revenue decline was smaller than anticipated due to successful turnaround efforts aimed at simplifying its product assortment [3] - Under Armour's adjusted operating results for the third quarter surpassed expectations, indicating positive progress [3] Group 2: Revenue Expectations - Despite positive earnings, Under Armour has adjusted its revenue expectations for fiscal 2026, anticipating a decline at the milder end of its forecast [2][5] - The company faces challenges such as weak demand in North American and Asia-Pacific markets and ongoing tariff pressures [2][5] Group 3: Valuation Metrics - The price-to-sales ratio is about 0.60, indicating investors pay 60 cents for every dollar of sales [4] - The enterprise value to sales ratio is approximately 0.90, reflecting the company's valuation relative to its revenue [4] - The debt-to-equity ratio is about 1.02, suggesting slightly more debt than equity, while the current ratio is approximately 1.69, indicating good liquidity to cover short-term liabilities [4]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Katie Greifeld taking you through to that closing bell with a global simulcast Carol Massar and Tim Stenovec, join us right now. Welcome to our audiences across bloomberg television, Bloomberg radio.Our partnership with you here on a huge turnaround in financial markets with all of the major indices basically up at a minimum by 2% on the day. Yeah, I've been thinking about you because I'm looking at the Russell 20 ...

Core Insights - Under Armour reported third-quarter earnings that exceeded expectations, with earnings per share of $0.09 compared to analyst expectations of a $0.02 loss, leading to a more than 11% increase in shares intra-day [1] - Revenue for the quarter totaled $1.33 billion, a 6% decline on a currency-neutral basis but slightly above the consensus estimate of $1.31 billion [1] Revenue Breakdown - North America revenue fell 10% to $757 million, negatively impacting overall results [2] - International revenue increased 3% to $577 million, with a 1% growth on a currency-neutral basis; EMEA revenue rose 2%, Asia-Pacific declined 5%, and Latin America increased 13% [2] Financial Metrics - Adjusted operating income reached $26 million, excluding litigation reserves and transformation and restructuring costs [3] - Gross margin declined by 310 basis points to 44.4%, primarily due to higher tariffs [3] Future Outlook - Under Armour forecasts fiscal 2026 earnings per share of $0.10 to $0.11, exceeding the average analyst estimate of $0.05 [3] - The company expects full-year revenue to decline by approximately 4%, an improvement from the previous outlook of a 4% to 5% decrease [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27] - Third quarter gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30] - Reported diluted loss per share was $1.01, influenced by a non-cash valuation allowance against certain U.S. federal deferred tax assets [33] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, largely due to softness in training, golf, and running categories, while sportswear remained flat [29] - Footwear revenue decreased 12%, reflecting declines across most categories, partially offset by growth in outdoor [29] - Accessories revenue decreased 3%, driven largely by declines in golf, outdoor, and team sports [29] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale [28] - EMEA revenue increased 6% on a reported basis and 2% on a currency-neutral basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5% on both reported and currency-neutral bases, marking a sequential improvement from earlier declines [28] Company Strategy and Development Direction - The company is focused on execution and has made leadership changes to enhance speed and accountability [9][10] - A disciplined strategy is being implemented to simplify operations, reduce SKUs, and improve product mix and pricing [11][12] - The company aims to stabilize its footwear business by exiting low productivity styles and concentrating on fewer, higher-impact franchises [14][15] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind, with a focus on execution and stabilization [25] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [45][49] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improvement in fourth-quarter revenue trends [37] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related expenses during the third quarter [31] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [36] - The company is prioritizing balance sheet strength, ending the quarter with no amounts outstanding under its revolving credit facility [36] Q&A Session Questions and Answers Question: Can you speak to what makes you confident about stabilization in North America? - Management expressed confidence in the leadership team and the clarity of the operational model, indicating that they are addressing the right issues and seeing positive order book trends [45][46][49] Question: Are you seeing progress in Europe and APAC as well? - Management noted that EMEA has been a strong performer with 9% growth, while APAC is viewed as a critical long-term growth opportunity [61][64] Question: How are you thinking about segmentation in footwear? - The company is focusing on clear segmentation of good, better, and best products, aiming to concentrate growth at the better and best levels [68][70]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27] - Third quarter gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30] - Reported diluted loss per share was $1.01, influenced by a non-cash valuation allowance against certain U.S. federal deferred tax assets [33] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, largely due to softness in training, golf, and running categories, while sportswear remained flat [29] - Footwear revenue decreased 12%, reflecting declines across most categories, partially offset by growth in outdoor [29] - Accessories revenue decreased 3%, driven largely by declines in golf, outdoor, and team sports [29] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale [27] - EMEA revenue increased 6% on a reported basis and 2% on a currency-neutral basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5% on both reported and currency-neutral bases, marking a sequential improvement from earlier declines [28] Company Strategy and Development Direction - The company is focused on execution and has made real progress with a disciplined strategy and structure in place [5][6] - Leadership changes have been made to accelerate speed and improve product mix, pricing, and margin performance [9][10] - The strategy emphasizes intentional product segmentation and storytelling to enhance consumer engagement and brand relevance [18][19] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind them, with a focus on execution and stabilization [25][39] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [45][49] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improvement in fourth-quarter revenue trends [37] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related SG&A expenses during the third quarter [31] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [35] - The company is prioritizing balance sheet strength, ending the quarter with no amounts outstanding under its revolving credit facility [36] Q&A Session Questions and Answers Question: Can you speak to what makes you confident about stabilization in North America? - Management expressed confidence due to improved relationships with partners and a positive order book shaping up [45][49] Question: Are you seeing progress in Europe and APAC as well? - EMEA has shown strong growth, while APAC is expected to stabilize over the next 12 months [60][64] Question: How are you thinking about segmentation in footwear? - The company aims to concentrate growth at the better and best levels, focusing on clear segmentation and premiumization [68][70]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27][28] - Gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30][31] - Adjusted operating income was $26 million, exceeding expectations, while reported diluted loss per share was $1.01, influenced by non-cash valuation allowances and other charges [33][34] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, driven by softness in training, golf, and running categories, while sportswear remained flat [30] - Footwear revenue decreased 12%, reflecting declines across most categories, although outdoor footwear showed some growth [30] - Accessories revenue decreased 3%, largely due to declines in golf, outdoor, and team sports [30] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale, while direct-to-consumer business saw a smaller decline [27][28] - EMEA revenue increased 6% on a reported basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5%, marking a sequential improvement from earlier declines, driven mainly by the full-price wholesale business [28] Company Strategy and Development Direction - The company is focused on execution and simplifying its operating model, with a renewed go-to-market strategy and a clearly articulated business plan [4][6] - Leadership changes have been made to enhance speed and accountability, with key positions filled to support product mix and pricing strategies [8][9] - The strategy emphasizes intentional product segmentation and storytelling to strengthen brand identity and consumer engagement [18][19] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind, with a focus on execution and stabilization [26][41] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [46][50] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improved trends in the fourth quarter [38] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related expenses during the quarter [32] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [35] - The company is prioritizing balance sheet strength, ending the quarter with no outstanding amounts under its revolving credit facility [37] Q&A Session Summary Question: Can you speak to what makes you confident about stabilization in North America? - Management highlighted the internal talent and leadership changes that have contributed to improved relationships with partners and a more consistent order book [46][50] Question: Are you seeing progress in Europe and APAC as well? - EMEA has shown strong growth, while APAC is expected to stabilize over the next 12 months, with ongoing efforts to manage inventory and enhance the retail experience [62][65] Question: How are you thinking about segmentation in footwear? - The company is focusing on clear segmentation of products into good, better, and best categories, aiming to concentrate growth at the better and best levels [69][70]

分组1 - Under Armour reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, representing an earnings surprise of +662.50% [1] - The company posted revenues of $1.33 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.47%, although this is a decrease from year-ago revenues of $1.4 billion [2] - Under Armour has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] 分组2 - The stock has increased by approximately 26.4% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] - The current consensus EPS estimate for the upcoming quarter is breakeven on $1.16 billion in revenues, and for the current fiscal year, it is $0.05 on $4.94 billion in revenues [7] - The Textile - Apparel industry, to which Under Armour belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance - Total net revenues decreased by 5.2% compared to the same period last year, with wholesale revenue down 6.4% and direct-to-consumer revenue down 3.9%[165]. - Apparel revenue decreased by 3.3%, footwear revenue decreased by 12.0%, and accessories revenue decreased by 2.5%[165]. - Net revenue decreased by 10.3% in North America, while it increased by 6.0% in EMEA, decreased by 5.1% in Asia-Pacific, and increased by 19.7% in Latin America[165]. - Net revenues for the three months ended December 31, 2025, decreased by $73.3 million, or 5.2%, to $1.3 billion compared to $1.4 billion in the same period of 2024[172]. - Net sales for the nine months ended December 31, 2025, decreased by $182.2 million, or 4.7%, to $3.7 billion from $3.9 billion in the same period of 2024[175]. - The company reported a net loss of $430.8 million for the three months ended December 31, 2025, compared to a net income of $1.2 million in the same period of 2024[171]. Cost and Expenses - Gross margin decreased by 310 basis points to 44.4%[165]. - Selling, general and administrative expenses increased by 4.2%[165]. - Selling, general and administrative expenses increased by $26.8 million, or 4.2%, during the three months ended December 31, 2025, compared to the same period in 2024[185]. - Selling, general and administrative expenses as a percentage of net revenues increased to 50.0% during the three months ended December 31, 2025, compared to 45.5% in 2024[185]. - Marketing and advertising costs decreased by $20.2 million or 12.6%, representing 10.5% of net revenues compared to 11.4% in the previous period[1]. - Other costs increased by $47.0 million or 9.8%, rising to 39.5% of net revenues from 34.1%[1]. - Restructuring charges for the three months ended December 31, 2025, amounted to $74.98 million, significantly higher than $13.95 million in the same period of 2024[186]. - Restructuring charges increased by $61.0 million during the three months ended December 31, 2025, a 437.7% increase compared to the same period in 2024[188]. Restructuring and Future Plans - The company approved a restructuring plan with an updated total of up to $255 million in pre-tax charges, including $107 million in cash-related charges and $148 million in non-cash charges[163]. - The restructuring plan is expected to be substantially complete by the end of Fiscal 2026[163]. - Anticipated negative impact of approximately $80 million to cost of goods sold in Fiscal 2026 due to increased tariffs, expected to impact gross profit by approximately 160 basis points[167]. - The company is focused on long-term growth through increased sales in apparel, footwear, and accessories, as well as expansion in direct-to-consumer and wholesale channels[162]. Cash Flow and Liquidity - Cash provided by operating activities increased by $114.2 million for the nine months ended December 31, 2025, driven by changes in working capital[237]. - As of December 31, 2025, the company had approximately $465 million in cash and cash equivalents[225]. - The company anticipates that cash on hand and cash from operations will be adequate to meet liquidity needs for at least the next twelve months[225]. - Cash flows used in investing activities increased by $574.5 million compared to the nine months ended December 31, 2024, with $601.2 million deposited into a restricted investment related to Senior Notes due 2026[238]. - Total capital expenditures for the nine months ended December 31, 2025, were $72.0 million, approximately 2% of net revenues, a decrease of $67.9 million from $139.9 million in the same period of 2024[239]. - Cash flows provided by financing activities increased by $514.9 million compared to the nine months ended December 31, 2024, including the issuance of $400 million of Senior Notes due 2030[240]. Debt and Compliance - The company issued $400 million in Senior Notes due 2030, bearing interest at a fixed rate of 7.25% per annum, payable semi-annually starting January 15, 2026[254]. - The company is required to maintain a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0, and total indebtedness to consolidated EBITDA ratio not exceeding 3.25 to 1.0[248]. - As of December 31, 2025, the company was in compliance with all applicable covenants under the amended credit agreement[248]. - The amended credit agreement provides for $1.1 billion of revolving credit commitments, expiring on June 16, 2030, with certain conditions for extensions[242]. - The company satisfied and discharged the Senior Notes due 2026 by depositing sufficient funds, thus releasing it from remaining obligations under those notes[252]. - As of December 31, 2025, the company had no outstanding amounts under the revolving credit facility after repaying $200 million of borrowings[243].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 __________________________ ...