Under Armour (UA) Q3 2025 earnings summary

Executive summary

• Third quarter revenue declined 5.7–6% year-over-year to $1.4 billion, with North America down 7.8–8% and international down 1%, outperforming expectations.

• Gross margin improved by 240 basis points to 47.5%, driven by reduced discounting, supply chain savings, and favorable currency impacts.

• Net income was $1–1.2 million, with adjusted net income at $35 million; operating income was $13.5–14 million, impacted by higher SG&A and restructuring charges.

• Strategic focus on premium positioning, reduced promotions, and a consumer-focused transformation, including investments in marketing, product innovation, and team alignment.

• Completed a $434 million securities litigation settlement and implemented a restructuring plan with significant charges.

Financial highlights

• Net revenues: $1.40 billion for the quarter, down from $1.49 billion year-over-year.

• Gross profit: $665.2 million, with gross margin at 47.5% (up from 45.1%).

• SG&A expenses rose 6–6.4% to $637.7–638 million, mainly from higher marketing, IT, and restructuring costs.

• Adjusted operating income was $60 million; reported operating income at $13.5–14 million due to impairment and restructuring charges.

• Inventory remained flat at $1.1 billion; cash and equivalents at $726.9–727 million.

Outlook and guidance

• Fiscal 2025 revenue expected to decline ~10%, an improvement from prior guidance; North America down 12–13%, EMEA flat or up, APAC down low-teens.

• Gross margin improvement for the year raised to 160 basis points.

• Adjusted operating income outlook increased to $185–$195 million; adjusted diluted EPS expected at $0.28–$0.30.

• Capital expenditures guidance reduced to $170–$180 million.

• Q4 expected to face headwinds from order book softness, APAC challenges, tough North American comps, and currency impacts.