Under Armour : Q4 & FY 2025 Press Release

Published: 2025-05-13 07:09:06 ET UAA

Published on 05/13/2025 at 07:09

BALTIMORE, May 13, 2025/PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) announced its unaudited financial results for the fourth quarter and full fiscal year 2025, which ended on March 31, 2025. The company reports its financial performance in accordance with accounting principles generally accepted in the United States ("GAAP"). This press release includes references to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures detailed in the "Non-GAAP Financial Information" section below.

"One year into our strategic reset, we're laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth," said Under Armour President and CEO Kevin Plank. "Our fourth quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand."

Fourth Quarter Fiscal 2025 Review

Full Year Fiscal 2025 Review

Share Buyback Program

Under Armour repurchased $25 million of its Class C common stock in the fourth quarter, retiring 4.1 million shares. As of March 31, 2025, a total of 12.8 million shares had been repurchased for $90 million as part of a three-year, $500 million program approved by the Board of Directors in May 2024.

Fiscal 2025 Restructuring Plan

In May 2024, Under Armour announced a restructuring plan to improve the company's financial and operational efficiencies. The plan has an anticipated range of $140 million to $160 million, with up to $90 million expected to be cash-related and as much as $70 million projected as non-cash charges. By the end of the fourth fiscal quarter of 2025, the company recognized $58 million in restructuring and impairment charges and $31 million in other related transformational expenses under the plan. Out of the total $89 million incurred so far, $55 million is cash-related, and $34 million is non-cash-related. The company anticipates that the remaining charges outlined in the updated restructuring plan will be realized during fiscal 2026.

First Quarter Fiscal 2026 Outlook

"As we look toward fiscal 2026 amid a complex macroeconomic backdrop, our sharpened execution, alignment, and focus - bolstered by the move to a category-led operating model - equip us to navigate ongoing volatility with resilience," continued Plank. "I'm confident in the agility we've built over the past year, and we are raising our bar of excellence at Under Armour."

Given the uncertainty surrounding evolving trade policies and the macroeconomic environment, including potential demand-related and cost impacts from tariffs, the company is providing an outlook solely for the first quarter of fiscal 2026. Key points related to Under Armour's first quarter fiscal 2026 outlook include:

Conference Call and Webcast

Under Armour will host its fourth quarter and full fiscal year 2025 conference call today at approximately 8:30 a.m. Eastern Time. The call will be streamed live at https://about.underarmour.com/investor-relations/financials and will be available for replay roughly three hours after the live event.

Non-GAAP Financial Information

This press release discusses "currency-neutral" and "adjusted" results, as well as the company's "adjusted" forward-looking estimates for the first quarter of the fiscal year ending March 31, 2026. Management believes this information is valuable for investors seeking to compare the company's operational results across different periods, as it provides clearer insight into its underlying performance by excluding these impacts. Currency-neutral financial data eliminates fluctuations in foreign currency exchange rates. Adjusted financial measures exclude the company's litigation settlement expenses (and related insurance recoveries), impairment charges related to vacating our previous global headquarters, the effects of the fiscal year 2025 restructuring plan and associated charges, and related tax effects. Management asserts these adjustments are not essential to the company's core operations. The reconciliation of non-GAAP figures to the most directly comparable financial measures computed in accordance with GAAP is included in the supplemental financial information that accompanies this release. All per-share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be viewed in isolation; they should be considered alongside the company's reported results prepared under GAAP. Furthermore, the company's non-GAAP financial information may not be comparable to similar measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories. Designed to empower human performance, Under Armour's innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.

Forward-Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, future financial condition or results of operations, growth prospects and strategies, potential restructuring efforts (including the scope, anticipated charges and costs, the timing of these measures, and the anticipated benefits of our restructuring initiatives), expectations related to promotional activities, freight, product cost pressures, foreign currency effects, the impact of global economic conditions including changes in trade policy and inflation on our results of operations, liquidity and use of capital resources, the development and introduction of new products, the execution of marketing strategies, benefits from significant investments, and impacts from litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential," or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe the expectations reflected in the forward-looking statements are reasonable, they are inherently uncertain. We cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Several important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: changes in general economic or market conditions (such as rising inflation and potential impacts of changes and uncertainties related to government fiscal, monetary, tax and trade policies) that could influence overall consumer spending or our industry; the impact of global events beyond our control, including military conflicts; and the effects of changes in the global trade environment, such as the imposition of new tariffs and countermeasures thereto, on our profitability; increased competition that may cause us to lose market share, lower product prices or significantly increase marketing efforts; fluctuations in the costs of raw materials and commodities we use in our products and supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes in the financial health of our customers; our ability to effectively develop and launch new, innovative, and updated products; our ability to accurately forecast consumer preferences and demand for our products and to effectively manage our inventory; our ability to successfully execute potential restructuring plans and achieve expected benefits; loss of key customers, suppliers, or manufacturers; our ability to further expand our business globally and drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; our ability to effectively market and maintain a positive brand image; our ability to successfully manage or achieve expected outcomes from significant transactions and investments; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation, or application of our global operating and financial reporting information technology system; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations; risks related to data security or privacy breaches; the impact of global or regional public health emergencies on our industry and our business, financial condition and results of operations, including impacts on the global supply chain; and our potential exposure to and the financial impact of litigation and other proceedings. The forward-looking statements here reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect unanticipated events.

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025, and 2024

(Unaudited; in thousands, except per share amounts)

CONSOLIDATED STATEMENTS OF OPERATION

Three Months Ended March 31,

Year Ended March 31,

in '000s

2025

% of Net Revenues

2024

% of Net Revenues

2025

% of Net Revenues

2024

% of Net Revenues

Net revenues

$ 1,180,583

100.0 %

$ 1,332,197

100.0 %

$ 5,164,310

100.0 %

$ 5,701,879

100.0 %

Cost of goods sold

629,801

53.3 %

732,601

55.0 %

2,689,566

52.1 %

3,071,626

53.9 %

Gross profit

550,782

46.7 %

599,596

45.0 %

2,474,744

47.9 %

2,630,253

46.1 %

Selling, general and administrative expenses

607,133

51.4 %

603,150

45.3 %

2,601,991

50.4 %

2,400,502

42.1 %

Restructuring charges

15,726

1.3 %

- %

57,969

1.1 %

- %

Income (loss) from operations

(72,077)

(6.1) %

(3,554)

(0.3) %

(185,216)

(3.6) %

229,751

4.0 %

Interest income (expense), net

(3,321)

(0.3) %

2,478

0.2 %

(6,115)

(0.1) %

268

- %

Other income (expense), net

(4,718)

(0.4) %

(3,708)

(0.3) %

(13,431)

(0.3) %

32,055

0.6 %

Income (loss) before income taxes

(80,116)

(6.8) %

(4,784)

(0.4) %

(204,762)

(4.0) %

262,074

4.6 %

Income tax expense (benefit)

(12,198)

(1.0) %

(11,327)

(0.9) %

(2,890)

(0.1) %

30,006

0.5 %

Income (loss) from equity method investments

461

- %

605

- %

(26)

- %

Net income (loss)

$ (67,457)

(5.7) %

$ 6,568

0.5 %

$ (201,267)

(3.9) %

$ 232,042

4.1 %

Basic net income (loss) per share of Class A, B and C common stock

$ (0.16)

$ 0.02

$ (0.47)

$ 0.53

Diluted net income (loss) per share of Class A, B and C common stock

$ (0.16)

$ 0.02

$ (0.47)

$ 0.52

Weighted average common shares outstanding Class A, B and C common stock

Basic

429,292

435,582

432,245

440,324

Diluted

429,292

447,385

432,245

451,011

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025, and 2024

(Unaudited; in thousands)

NET REVENUES BY SEGMENT

Three Months Ended March 31,

Year Ended March 31,

in '000s

2025

2024

% Change

2025

2024

% Change

North America

$ 689,399

$ 771,870

(10.7) %

$ 3,105,624

$ 3,505,167

(11.4) %

EMEA

278,618

284,134

(1.9) %

1,086,578

1,081,915

0.4 %

Asia-Pacific

164,828

226,704

(27.3) %

755,437

873,019

(13.5) %

Latin America

45,087

50,241

(10.3) %

215,427

229,481

(6.1) %

Corporate Other (1)

2,651

(752)

(452.5) %

1,244

12,297

(89.9) %

Total net revenues

$ 1,180,583

$ 1,332,197

(11.4) %

$ 5,164,310

$ 5,701,879

(9.4) %

NET REVENUES BY DISTRIBUTION CHANNEL

Three Months Ended March 31,

Year Ended March 31,

in '000s

2025

2024

% Change

2025

2024

% Change

Wholesale

$ 767,603

$ 849,805

(9.7) %

$ 2,978,869

$ 3,243,187

(8.1) %

Direct-to-consumer

386,110

454,690

(15.1) %

2,089,607

2,335,154

(10.5) %

Net Sales

1,153,713

1,304,495

(11.6) %

5,068,476

5,578,341

(9.1) %

License revenues

24,219

28,454

(14.9) %

94,590

111,241

(15.0) %

Corporate Other (1)

2,651

(752)

(452.5) %

1,244

12,297

(89.9) %

Total net revenues

$ 1,180,583

$ 1,332,197

(11.4) %

$ 5,164,310

$ 5,701,879

(9.4) %

NET REVENUES BY PRODUCT CATEGORY

Three Months Ended March 31,

Year Ended March 31,

in '000s

2025

2024

% Change

2025

2024

% Change

Apparel

$ 780,366

$ 877,347

(11.1) %

$ 3,451,414

$ 3,789,016

(8.9) %

Footwear

281,845

337,738

(16.5) %

1,206,202

1,383,610

(12.8) %

Accessories

91,502

89,410

2.3 %

410,860

405,715

1.3 %

Net Sales

1,153,713

1,304,495

(11.6) %

5,068,476

5,578,341

(9.1) %

Licensing revenues

24,219

28,454

(14.9) %

94,590

111,241

(15.0) %

Corporate Other (1)

2,651

(752)

(452.5) %

1,244

12,297

(89.9) %

Total net revenues

$ 1,180,583

$ 1,332,197

(11.4) %

$ 5,164,310

$ 5,701,879

(9.4) %

(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program.

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025, and 2024

(Unaudited; in thousands)

INCOME (LOSS) FROM OPERATIONS BY SEGMENT

Three Months Ended March 31,

Year Ended March 31,

in '000s

2025

% of Net Revenues (1)

2024

% of Net Revenues (1)

2025

% of Net Revenues (1)

2024

% of Net Revenues (1)

North America

$ 100,302

14.5 %

$ 139,841

18.1 %

$ 629,518

20.3 %

$ 677,882

19.3 %

EMEA

33,021

11.9 %

58,467

20.6 %

147,182

13.5 %

176,205

16.3 %

Asia-Pacific

15,029

9.1 %

33,630

14.8 %

73,187

9.7 %

119,650

13.7 %

Latin America

6,004

13.3 %

5,642

11.2 %

47,532

22.1 %

38,401

16.7 %

Corporate Other (2)

(226,433)

(241,134)

(1,082,635)

(782,387)

Income (loss) from operations

$ (72,077)

(6.1) %

$ (3,554)

(0.3) %

$ (185,216)

(3.6) %

$ 229,751

4.0 %

(1) The percentage of operating income (loss) is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).

(2) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program. Corporate Other also includes expenses related to the company's central supporting functions.

Under Armour, Inc.

As of March 31, 2025, and March 31, 2024

(Unaudited; in thousands)

CONDENSED CONSOLIDATED BALANCE SHEETS

in '000s

March 31, 2025

March 31, 2024

Assets

Current assets

Cash and cash equivalents

$ 501,361

$ 858,691

Accounts receivable, net

675,822

757,339

Inventories

945,836

958,495

Prepaid expenses and other current assets, net

206,078

289,157

Total current assets

2,329,097

2,863,682

Property and equipment, net

645,147

664,503

Operating lease right-of-use assets

384,341

434,699

Goodwill

487,632

478,302

Intangible assets, net

5,224

7,000

Deferred income taxes

286,160

221,033

Other long-term assets

163,270

91,515

Total assets

$ 4,300,871

$ 4,760,734

Liabilities and Stockholders' Equity

Current maturities of long-term debt

$ -

$ 80,919

Accounts payable

429,944

483,731

Accrued expenses

348,747

287,853

Customer refund liabilities

146,021

139,283

Operating lease liabilities

130,050

139,331

Other current liabilities

54,381

34,344

Total current liabilities

1,109,143

1,165,461

Long-term debt, net of current maturities

595,125

594,873

Operating lease liabilities, non-current

574,277

627,665

Other long-term liabilities

132,048

219,449

Total liabilities

2,410,593

2,607,448

Total stockholders' equity

1,890,278

2,153,286

Total liabilities and stockholders' equity

$ 4,300,871

$ 4,760,734

Under Armour, Inc.

For the Year Ended March 31, 2025 and 2024

(Unaudited; in thousands)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended March 31,

2025

2024

Cash flows from operating activities

Net income (loss)

$ (201,267)

$ 232,042

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities

Depreciation and amortization

135,804

142,590

Unrealized foreign currency exchange rate (gain) loss

(14,636)

16,080

Loss on disposal of property and equipment

6,373

1,623

Non-cash restructuring and impairment charges

53,765

6,179

Amortization of bond premium and debt issuance costs

2,319

2,034

Stock-based compensation

52,974

42,998

Deferred income taxes

(61,794)

(23,693)

Changes in reserves and allowances

4,409

13,612

Changes in operating assets and liabilities:

Accounts receivable

79,981

(3,906)

Inventories

10,941

216,484

Prepaid expenses and other assets

13,116

(29,060)

Other non-current assets

(41,777)

34,920

Accounts payable

(58,465)

(197,887)

Accrued expenses and other liabilities

(62,675)

(18,267)

Customer refund liabilities

6,805

(21,427)

Income taxes payable and receivable

14,808

(60,352)

Net cash provided by (used in) operating activities

(59,319)

353,970

Cash flows from investing activities

Purchases of property and equipment

(168,684)

(150,333)

Sale of MyFitnessPal platform

50,000

45,000

Sale of MapMyFitness platform

8,000

Purchase of UNLESS COLLECTIVE, Inc, net of cash acquired

(8,120)

Purchase of equity method investment in ISC Sport

(7,546)

Net cash provided by (used in) investing activities

(126,350)

(105,333)

Cash flows from financing activities

Common stock repurchased

(90,000)

(75,000)

Repayment of long-term debt

(80,919)

Employee taxes paid for shares withheld for income taxes

(9,686)

(6,163)

Excise tax paid on repurchases of common stock

(628)

Proceeds from exercise of stock options and other stock issuances

2,494

3,193

Payments of debt financing costs

(2,067)

(720)

Net cash provided by (used in) financing activities

(180,806)

(78,690)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

4,609

(19,775)

Net increase (decrease) in cash, cash equivalents and restricted cash

(361,866)

150,172

Cash, cash equivalents and restricted cash

Beginning of period

876,917

726,745

End of period

$ 515,051

$ 876,917

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025

(Unaudited)

The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency-neutral net revenue, a non-GAAP measure. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION

Three Months Ended March 31, 2025

Year Ended March 31, 2025

Total Net Revenue

Net revenue growth - GAAP

(11.4) %

(9.4) %

Foreign exchange impact

1.6 %

0.5 %

Currency neutral net revenue growth - Non-GAAP

(9.8) %

(8.9) %

North America

Net revenue growth - GAAP

(10.7) %

(11.4) %

Foreign exchange impact

0.6 %

0.2 %

Currency neutral net revenue growth - Non-GAAP

(10.1) %

(11.2) %

EMEA

Net revenue growth - GAAP

(1.9) %

0.4 %

Foreign exchange impact

2.1 %

(0.1) %

Currency neutral net revenue growth - Non-GAAP

0.2 %

0.3 %

Asia-Pacific

Net revenue growth - GAAP

(27.3) %

(13.5) %

Foreign exchange impact

1.7 %

0.9 %

Currency neutral net revenue growth - Non-GAAP

(25.6) %

(12.6) %

Latin America

Net revenue growth - GAAP

(10.3) %

(6.1) %

Foreign exchange impact

13.0 %

6.0 %

Currency neutral net revenue growth - Non-GAAP

2.7 %

(0.1) %

Total International

Net revenue growth - GAAP

(12.9) %

(5.8) %

Foreign exchange impact

2.9 %

0.9 %

Currency neutral net revenue growth - Non-GAAP

(10.0) %

(4.9) %

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025

(Unaudited; in thousands, except per share amounts)

The tables below present the reconciliation of the company's condensed consolidated statement of operations in accordance with GAAP to specific adjusted non-GAAP financial measures discussed in this press release. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

ADJUSTED SELLING GENERAL AND ADMINISTRATIVE EXPENSES

in '000s

Three Months Ended March 31, 2025

Year Ended March 31, 2025

GAAP selling, general and administrative expenses

$ 607,133

$ 2,601,991

Add: Impact of litigation settlement

(4,750)

(265,796)

Add: Impact of restructuring-related transformational expenses

(15,993)

(31,193)

Add: Impact of other impairment charges

(28,360)

Adjusted selling, general and administrative expenses

$ 586,390

$ 2,276,642

ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION

in '000s

Three Months Ended March 31, 2025

Year Ended March 31, 2025

GAAP income (loss) from operations

$ (72,077)

$ (185,216)

Add: Impact of litigation settlement

4,750

265,796

Add: Impact of restructuring charges

15,726

57,969

Add: Impact of restructuring-related transformational expenses

15,993

31,193

Add: Impact of other impairment charges

28,360

Adjusted income from operations

$ (35,608)

$ 198,102

ADJUSTED NET INCOME (LOSS) RECONCILIATION

in '000s

Three Months Ended March 31, 2025

Year Ended March 31, 2025

GAAP net income (loss)

$ (67,457)

$ (201,267)

Add: Impact of litigation settlement

4,750

265,796

Add: Impact of restructuring charges

15,726

57,969

Add: Impact of restructuring-related transformational expenses

15,993

31,193

Add: Impact of other impairment charges

28,360

Add: Impact of provision for income taxes

(3,711)

(46,983)

Adjusted net income

$ (34,699)

$ 135,068

Under Armour, Inc.

For the Three Months and Year Ended March 31, 2025

(Unaudited; in thousands, except per share amounts)

ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION

Three Months Ended March 31, 2025

Year Ended March 31, 2025

GAAP diluted net income (loss) per share

$ (0.16)

$ (0.47)

Add: Impact of litigation settlement

0.01

0.61

Add: Impact of restructuring charges

0.04

0.13

Add: Impact of restructuring-related transformational expenses

0.04

0.07

Add: Impact of other impairment charges

0.07

Add: Impact of provision for income taxes

(0.01)

(0.10)

Adjusted diluted net income per share

$ (0.08)

$ 0.31

Under Armour, Inc.

Outlook for the Quarter Ended June 30, 2025

(Unaudited; in millions, except per share amounts)

The tables below reconcile the company's condensed consolidated statement of operations, presented in accordance with GAAP, to specific adjusted non-GAAP financial measures discussed in this press release. For further information regarding the company's use of non-GAAP financial measures, see "Non-GAAP Financial Information" above.

ADJUSTED OPERATING INCOME RECONCILIATION

(in millions)

Quarter Ending June 30, 2025

Low end of estimate

High end of estimate

GAAP income from operations

$ 5

$ 15

Add: Impact of charges under 2025 restructuring plan

Adjusted income from operations

$ 20

$ 30

ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION

Quarter Ending June 30, 2025

Low end of estimate

High end of estimate

GAAP diluted net loss per share

$ (0.02)

$ 0.00

Add: Impact of charges under 2025 restructuring plan, net of tax

0.03

Adjusted diluted net income per share

$ 0.01

$ 0.03

Under Armour, Inc.

As of March 31, 2025, and 2024

COMPANY-OWNED & OPERATED DOOR COUNT

March 31,

2025

2024

Factory House

180

183

Brand House

North America total doors

195

200

Factory House

178

173

Brand House

International total doors

246

240

Factory House

358

356

Brand House

Total doors

441

440

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SOURCE Under Armour, Inc.

Under Armour Contact: Lance Allega, Senior Vice President, Finance & Capital Markets, (410) 246-6810, [email protected]

Disclaimer

UA - Under Armour Inc. published this content on May 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2025 at 11:08 UTC.