Financial Data and Key Metrics Changes - The third quarter revenue declined by 6% to 0.08 for the quarter, while reported diluted earnings per share broke even [60] Business Line Data and Key Metrics Changes - Direct-to-consumer revenue declined by 9%, primarily due to a 20% decrease in eCommerce sales [53] - Apparel revenue was down 5%, while footwear declined by 9%, and accessories revenue increased by 6% [54] - The company is focusing on reducing SKUs across all assortments by 25% to enhance product presentation [19] Market Data and Key Metrics Changes - North America experienced an 8% revenue decline, mainly due to lower eCommerce sales [51] - EMEA revenue increased by 5%, while APAC revenue fell by 5% [51] - Latin America saw a revenue decline of 16%, primarily due to lower distributor sales [52] Company Strategy and Development Direction - The company is transitioning to a consumer-focused category management model to enhance accountability and performance [20][22] - A new marketing strategy aims to connect more authentically with young athletes, moving away from traditional performance marketing [24][35] - The company plans to centralize its marketing budget to fuel brand activation and improve engagement with athletes [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the brand's repositioning and the potential for improved growth trajectories in the long term [46][68] - The company is addressing challenges in the APAC region and is focused on stabilizing its trajectory there [44][93] - Management acknowledged that while the fourth quarter may face headwinds, there are signs of improvement in profitability and brand strength [66][67] Other Important Information - The company has gained 4 million new loyalty program members, raising the total to 17 million in North America [40] - A significant portion of the marketing budget will be redeployed to enhance brand activation and storytelling [34][105] - The company is committed to maintaining its premium positioning in the market while navigating competitive pressures [42] Q&A Session Questions and Answers Question: Can you elaborate on balancing storytelling while achieving more by doing less? - The company is focusing on a growth by constraint model, empowering teams to be agile and intentional in their product offerings [75] Question: What percentage of eCommerce is still on discounts? - The company has made progress in reducing discounts but still has work to do in this area [78] Question: Are you beginning to see results from brand strengthening strategies? - Management noted increased interest from retail partners and a growing sense of energy within the company [86] Question: What is the outlook for North America? - The company is optimistic about its position in North America and is focused on reducing promotions to unlock growth [98] Question: How is the North America reset working? - Management believes they are in a better position than in years past and are working towards growth [99]
Under Armour(UAA) - 2025 Q3 - Earnings Call Transcript