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UNDER ARMOUR REPORTS SECOND QUARTER 2025 RESULTS; RAISES FISCAL 2025 OUTLOOK

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Under Armour reported Q2 fiscal 2025 results with revenue down 11% to $1.4 billion. Despite revenue decline, gross margin increased 200 basis points to 49.8%. North America revenue decreased 13% to $863 million, while international revenue fell 6% to $538 million. The company reported net income of $170 million and adjusted diluted EPS of $0.30.

The company raised its fiscal 2025 outlook, expecting improved gross margin of 125-150 basis points, and adjusted operating income of $165-185 million. The restructuring plan range was increased to $140-160 million, with anticipated completion during fiscal 2025 and 2026.

Under Armour ha riportato i risultati del secondo trimestre dell'esercizio fiscale 2025 con un fatturato in calo dell'11%, a 1,4 miliardi di dollari. Nonostante la diminuzione del fatturato, il margine lordo è aumentato di 200 punti base, raggiungendo il 49,8%. I fatturati in Nord America sono diminuiti del 13%, a 863 milioni di dollari, mentre il fatturato internazionale è sceso del 6%, a 538 milioni di dollari. L'azienda ha registrato un utile netto di 170 milioni di dollari e un utile per azione diluito rettificato di 0,30 dollari.

L'azienda ha rivisto al rialzo le previsioni per l'esercizio fiscale 2025, prevedendo un miglioramento del margine lordo di 125-150 punti base e un utile operativo rettificato di 165-185 milioni di dollari. L'intervallo del piano di ristrutturazione è stato aumentato a 140-160 milioni di dollari, con completamento previsto per gli esercizi fiscali 2025 e 2026.

Under Armour informó sobre los resultados del segundo trimestre del año fiscal 2025, con ingresos que caen un 11% a 1,4 mil millones de dólares. A pesar de la disminución de ingresos, el margen bruto aumentó 200 puntos básicos al 49,8%. Los ingresos en Norteamérica disminuyeron un 13%, quedando en 863 millones de dólares, mientras que los ingresos internacionales cayeron un 6%, a 538 millones de dólares. La empresa reportó un ingreso neto de 170 millones de dólares y un EPS diluido ajustado de 0,30 dólares.

La empresa elevó sus pronósticos para el año fiscal 2025, esperando una mejora del margen bruto de 125-150 puntos básicos y un ingreso operativo ajustado de 165-185 millones de dólares. El rango del plan de reestructuración se incrementó a 140-160 millones de dólares, con una finalización anticipada durante los años fiscales 2025 y 2026.

언더 아머는 2025 회계연도 2분기 실적을 보고했으며, 수익은 11% 감소한 14억 달러로 집계되었습니다. 수익 감소에도 불구하고 총 매출은 200베이시스 포인트 증가하여 49.8%에 달했습니다. 북미 수익은 13% 감소한 8억 6300만 달러였고, 국제 수익은 6% 감소한 5억 3800만 달러였습니다. 회사는 1억 7000만 달러의 순이익과 조정 후 희석 주당순이익(EPS) 0.30 달러를 보고했습니다.

회사는 2025 회계연도 전망을 상향 조정하며 총 매출이 125-150 베이시스 포인트 개선될 것으로 기대하고, 조정된 운영 이익은 1억 6500만~1억 8500만 달러로 예상했습니다. 구조조정 계획 범위는 1억 4000만~1억 6000만 달러로 증가했으며, 2025 및 2026 회계연도 동안 완료될 것으로 예상됩니다.

Under Armour a annoncé les résultats du deuxième trimestre de l'exercice fiscal 2025, avec un chiffre d'affaires en baisse de 11%, à 1,4 milliard de dollars. Malgré cette baisse, la marge brute a augmenté de 200 points de base pour atteindre 49,8%. Le chiffre d'affaires en Amérique du Nord a diminué de 13%, se chiffrant à 863 millions de dollars, tandis que le chiffre d'affaires international a baissé de 6%, atteignant 538 millions de dollars. L'entreprise a déclaré un bénéfice net de 170 millions de dollars et un BPA dilué ajusté de 0,30 dollar.

L'entreprise a révisé à la hausse ses perspectives pour l'exercice fiscal 2025, s'attendant à une amélioration de la marge brute de 125 à 150 points de base et à un bénéfice d'exploitation ajusté de 165 à 185 millions de dollars. La fourchette du plan de restructuration a été augmentée à 140-160 millions de dollars, avec un achèvement prévu pendant les exercices fiscaux 2025 et 2026.

Under Armour berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025, mit einem Umsatzrückgang von 11% auf 1,4 Milliarden Dollar. Trotz des Umsatzrückgangs stieg die Bruttomarge um 200 Basispunkte auf 49,8%. Der Umsatz in Nordamerika sank um 13% auf 863 Millionen Dollar, während der internationale Umsatz um 6% auf 538 Millionen Dollar fiel. Das Unternehmen meldete einen Nettogewinn von 170 Millionen Dollar und einen bereinigten verwässerten Gewinn pro Aktie (EPS) von 0,30 Dollar.

Das Unternehmen hob seine Prognose für das Geschäftsjahr 2025 an und erwartet eine Verbesserung der Bruttomarge von 125 bis 150 Basispunkten sowie einen bereinigten Betriebsgewinn von 165 bis 185 Millionen Dollar. Der Rahmen des Restrukturierungsplans wurde auf 140 bis 160 Millionen Dollar erhöht, mit einem voraussichtlichen Abschluss im Geschäftsjahr 2025 und 2026.

Positive
  • Gross margin increased 200 basis points to 49.8%
  • Net income reached $170 million with adjusted EPS of $0.30
  • Raised full-year profitability outlook
  • Inventory decreased 3% to $1.1 billion
  • Strong cash position with $531 million and no borrowings outstanding
Negative
  • Revenue declined 11% to $1.4 billion
  • North America revenue dropped 13% to $863 million
  • eCommerce revenue decreased 21%
  • Wholesale revenue decreased 12% to $826 million
  • Expects 14-16% decline in North America business for fiscal 2025

Insights

Under Armour's Q2 FY25 results show a strategic pivot towards premium positioning, despite an 11% revenue decline to $1.4 billion. The standout metric is the 200 basis point improvement in gross margin to 49.8%, driven by reduced discounting and better cost management. The company's restructuring efforts are yielding positive results, with adjusted operating income of $166 million and improved inventory management showing a 3% reduction.

The raised guidance, particularly the adjusted operating income outlook of $165-185 million (up from $140-160 million), signals management's confidence in their premium positioning strategy. However, investors should note the projected revenue decline in North America (14-16%) as the company resets its largest market. The increased marketing investment of $25 million demonstrates a long-term brand-building focus while maintaining profitability.

The strategic shift toward premium positioning is well-timed given current market dynamics. The planned reduction in promotional activities, particularly in e-commerce (down 21%), indicates a deliberate move away from discounting to protect brand value. The flat performance in owned stores while reducing online promotions suggests successful execution of the premium strategy at the retail level.

The international performance varies significantly by region, with EMEA showing resilience (down just 1%) while Asia-Pacific faces stronger headwinds (down 11%). The company's decision to invest additional marketing dollars from better-than-expected profitability demonstrates a balanced approach to long-term brand building while maintaining near-term financial discipline.

BALTIMORE, Nov. 7, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) announced unaudited financial results for its second quarter of fiscal 2025, which ended September 30, 2024. The company reports its financial performance following accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures described below under the "Non-GAAP Financial Information" paragraph.

"Our second quarter fiscal 2025 performance demonstrates that our strategy to reconstitute the Under Armour brand and establish a more premium position in the marketplace is gaining traction," said Under Armour President and CEO Kevin Plank. "With better-than-expected results, we are pleased to raise our full-year profitability outlook while simultaneously increasing marketing investments to amplify our brand."

Plank continued, "We are a fundamentally stronger business today with increasingly better execution across key dimensions. This includes more consistent marketplace discipline through meaningfully improved product, storytelling, and sales leadership, which will deliver a sharper, unique approach to our brand position in the years ahead."

Second Quarter Fiscal 2025 Review

  • In line with our expectations, revenue was down 11 percent to $1.4 billion (down 10 percent currency neutral).
    • North America revenue decreased 13 percent to $863 million, and international revenue decreased 6 percent to $538 million (down 5 percent currency neutral). In the international business, revenue in EMEA was down 1 percent (down 1 percent currency neutral), down 11 percent in Asia-Pacific (down 10 percent currency neutral), and down 13 percent in Latin America (down 4 percent currency neutral).
    • Wholesale revenue decreased 12 percent to $826 million, and direct-to-consumer revenue was down 8 percent to $550 million. Revenue from owned and operated stores remained flat. Due to planned decreases in promotional activities, eCommerce revenue decreased by 21 percent, representing 30 percent of the total direct-to-consumer business for the quarter.
    • Apparel revenue decreased 12 percent to $947 million, footwear revenue was down 11 percent to $313 million, and accessories revenue was up 2 percent to $116 million.
  • Gross margin increased 200 basis points to 49.8 percent, driven primarily by lower product and freight costs, reduced discounting levels in the direct-to-consumer business, and a favorable channel mix.
  • Selling, general, and administrative expenses decreased 15 percent to $520 million. Adjusted selling, general, and administrative expenses decreased 13 percent to $530 million, which excludes $13 million in benefits from a litigation-related insurance recovery and approximately $3 million in transformation expenses related to our Fiscal 2025 restructuring program.
  • Restructuring charges were $3 million.
  • Operating income was $173 million. Excluding the insurance recovery, transformation expenses, and restructuring charges, adjusted operating income was $166 million.
  • Net income was $170 million. Adjusted net income was $131 million.
  • Diluted earnings per share was $0.39. Adjusted diluted earnings per share was $0.30.
  • Inventory decreased 3 percent to $1.1 billion.
  • At the end of the quarter, cash and cash equivalents totaled $531 million, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.

Fiscal 2025 Restructuring Plan

In May 2024, Under Armour announced a restructuring plan designed to strengthen and support the company's financial and operational efficiencies. Following further evaluation, in September 2024, the company announced additional restructuring actions primarily related to the decision to exit one of its distribution facilities in Rialto, California, increasing its restructuring plan range to $140 million to $160 million, of which up to $75 million of the charges are anticipated to be cash-related and up to $85 million are expected to be non-cash charges. As of the second fiscal quarter of 2025, the company has recognized $28 million in restructuring and impairment charges and $11 million in other related transformational expenses under the plan. Of the total $40 million incurred to date, $36 million is cash-related, and $4 million is non-cash-related. The company anticipates the remainder of the charges under the updated restructuring plan will occur during fiscal 2025 and fiscal 2026.

Updated Fiscal 2025 Outlook

Key points related to Under Armour's fiscal 2025 outlook include:

  • Revenue is expected to decline at a low double-digit percentage rate. This includes a 14 to 16 percent decline in North America as the company works to reset this business. The company also expects a low single-digit percent decline in its international business, with flat results in EMEA offset by a high single-digit decline in its Asia-Pacific business due to macroeconomic pressures.
  • Gross margin is expected to increase by 125 to 150 basis points compared to the prior expectation of a 75 to 100 basis point improvement. This increase is driven primarily by reduced promotional and discounting activities in the company's direct-to-consumer business and product costing benefits.
  • Selling, general, and administrative expenses are expected to increase in the mid-to-high single-digit percentage range, primarily due to litigation settlement expenses. Excluding the litigation settlement expense, related insurance recoveries, and anticipated transformation expenses, adjusted selling, general, and administrative expenses are expected to decrease at a low-to-mid single-digit percentage rate. This includes approximately $25 million in additional marketing investments following better-than-expected year-to-date profitability performance that will be used to build the brand over the long term.
  • Operating loss is expected to be $176 to $196 million, compared to the previous expectation of $220 to $240 million. Excluding the midpoint of anticipated restructuring charges and transformation expenses, litigation settlement expenses, and related insurance recoveries, adjusted operating income is expected to be $165 to $185 million, compared to the prior expectation of $140 to $160 million.
  • Diluted loss per share is expected to be between $0.48 and $0.51, compared to the prior expectation of $0.53 to $0.56. Adjusted diluted earnings per share is expected to be between $0.24 and $0.27, compared to the previous expectation of $0.19 to $0.21.
  • Capital expenditures are expected to be between $190 and $210 million, compared to the previous estimate of $200 to $220 million.

Conference Call and Webcast

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

Non-GAAP Financial Information

This press release refers to "currency-neutral" and "adjusted" results, as well as "adjusted" forward-looking estimates of the company's results for its 2025 fiscal year ending March 31, 2025. Management believes this information is helpful to investors in comparing the company's results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude changes in foreign currency exchange rates. References to adjusted financial measures exclude the company's litigation settlement expense (and related insurance recoveries) and the impact of the company's fiscal year 2025 restructuring plan, related charges, and related tax effects. Management believes these adjustments are not core to the company's operations. The reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP is presented in supplemental financial information furnished with this release. All per-share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be considered in isolation. They should be contemplated in addition to, and not as an alternative to, the company's reported results prepared per GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similarly titled 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, our future financial condition or results of operations, our prospects and strategies for future growth, potential restructuring efforts, including the scope of these restructuring efforts and the amount of potential charges and costs, the timing of these measures, and the anticipated benefits of our restructuring plans, expectations regarding promotional activities, freight, product cost pressures, and foreign currency impacts, the impact of global economic conditions and inflation on our results of operations, our liquidity and use of capital resources, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments, and the impact of 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, including increasing inflation, that could affect overall consumer spending or our industry; increased competition causing us to lose market share or reduce the prices of our products or increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and our 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 shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; our ability to successfully execute any potential restructuring plans and realize their expected benefits; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff, and tax regulations on our profitability; 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; the impact of global events beyond our control, including military conflicts; 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; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively market and maintain a positive brand image; 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; risks related to data security or privacy breaches; 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.

As previously disclosed, during Fiscal 2024, we identified and corrected certain accounting errors, primarily related to the cost of goods sold and selling, general and administrative expenses on the Consolidated Statement of Operations, and corresponding impacts to our other Consolidated Financial Statements. The impacts of these revisions were not material to our previously filed financial statements. Information presented in the tables below for the three and six months ended September 30, 2023 has been revised to reflect these corrections. See Note 1 to the company's Condensed Consolidated Financial Statements included in Part I, Item 1 of the Company's Quarterly Report on Form 10-Q for the three and six months ended September 30, 2024, to be filed with the Securities and Exchange Commission.

Under Armour, Inc.

For the Three and Six Months Ended September 30, 2024, and 2023

(Unaudited; in thousands, except per share amounts)
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATION






Three Months Ended September 30,


Six Months Ended September 30,

in '000s

2024


% of Net
Revenues


2023


% of Net
Revenues


2024


% of Net
Revenues


2023


% of Net
Revenues

Net revenues

$  1,399,023


100.0 %


$  1,566,674


100.0 %


$  2,582,688


100.0 %


$  2,883,639


100.0 %

Cost of goods sold

702,891


50.2 %


818,151


52.2 %


1,323,881


51.3 %


1,523,621


52.8 %

Gross profit

696,132


49.8 %


748,523


47.8 %


1,258,807


48.7 %


1,360,018


47.2 %

Selling, general and administrative expenses

519,840


37.2 %


609,050


38.9 %


1,357,157


52.5 %


1,198,122


41.5 %

Restructuring charges

3,212


0.2 %



— %


28,298


1.1 %



— %

Income (loss) from operations

173,080


12.4 %


139,473


8.9 %


(126,648)


(4.9) %


161,896


5.6 %

Interest income (expense), net

(1,747)


(0.1) %


(373)


— %


597


— %


(1,999)


(0.1) %

Other income (expense), net

(3,420)


(0.2) %


(6,104)


(0.4) %


(6,150)


(0.2) %


(12,164)


(0.4) %

Income (loss) before income taxes

167,913


12.0 %


132,996


8.5 %


(132,201)


(5.1) %


147,733


5.1 %

Income tax expense (benefit)

(2,136)


(0.2) %


28,436


1.8 %


3,013


0.1 %


32,764


1.1 %

Income (loss) from equity method investments

333


— %


151


— %


170


— %


(248)


— %

Net income (loss)

$  170,382


12.2 %


$  104,711


6.7 %


$ (135,044)


(5.2) %


$  114,721


4.0 %

















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

$       0.39




$       0.24




$      (0.31)




$       0.26



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

$       0.39




$       0.23




$      (0.31)




$       0.25



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









Basic

432,225




443,525




433,950




444,195



Diluted

435,685




453,715




433,950




454,107



 

Under Armour, Inc.

For the Three and Six Months Ended September 30, 2024, and 2023

(Unaudited; in thousands)
 

NET REVENUES BY SEGMENT






Three Months Ended September 30,


Six Months Ended September 30,

in '000s

2024


2023


% Change


2024


2023


% Change

North America

$       863,345


$       991,357


(12.9) %


$    1,572,605


$    1,817,962


(13.5) %

EMEA

283,178


287,091


(1.4) %


510,070


513,732


(0.7) %

Asia-Pacific

207,661


232,065


(10.5) %


389,497


434,297


(10.3) %

Latin America

46,941


53,669


(12.5) %


111,350


109,408


1.8 %

Corporate Other (1)

(2,102)


2,492


(184.3) %


(834)


8,240


(110.1) %

Total net revenues

$    1,399,023


$    1,566,674


(10.7) %


$    2,582,688


$    2,883,639


(10.4) %

 

NET REVENUES BY DISTRIBUTION CHANNEL






Three Months Ended September 30,


Six Months Ended September 30,

in '000s

2024


2023


% Change


2024


2023


% Change

Wholesale

$       825,993


$       939,725


(12.1) %


$    1,506,506


$    1,681,683


(10.4) %

Direct-to-consumer

550,336


595,811


(7.6) %


1,030,549


1,139,998


(9.6) %

Net Sales

1,376,329


1,535,536


(10.4) %


2,537,055


2,821,681


(10.1) %

License revenues

24,796


28,646


(13.4) %


46,467


53,718


(13.5) %

Corporate Other (1)

(2,102)


2,492


(184.3) %


(834)


8,240


(110.1) %

Total net revenues

$    1,399,023


$    1,566,674


(10.7) %


$    2,582,688


$    2,883,639


(10.4) %

 

NET REVENUES BY PRODUCT CATEGORY






Three Months Ended September 30,


Six Months Ended September 30,

in '000s

2024


2023


% Change


2024


2023


% Change

Apparel

$       947,188


$    1,070,401


(11.5) %


$    1,704,980


$    1,895,014


(10.0) %

Footwear

312,760


351,202


(10.9) %


623,149


714,872


(12.8) %

Accessories

116,381


113,933


2.1 %


208,926


211,795


(1.4) %

Net Sales

1,376,329


1,535,536


(10.4) %


2,537,055


2,821,681


(10.1) %

Licensing revenues

24,796


28,646


(13.4) %


46,467


53,718


(13.5) %

Corporate Other (1)

(2,102)


2,492


(184.3) %


(834)


8,240


(110.1) %

Total net revenues

$    1,399,023


$    1,566,674


(10.7) %


$    2,582,688


$    2,883,639


(10.4) %


(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 and Six Months Ended September 30, 2024, and 2023

(Unaudited; in thousands)
 

INCOME (LOSS) FROM OPERATIONS BY SEGMENT






Three Months Ended September 30,


Six Months Ended September 30,

in '000s

2024


% of Net
Revenues (1)


2023


% of Net
Revenues (1)


2024


% of Net
Revenues (1)


2023


% of Net
Revenues (1)

North America

$   217,259


25.2 %


$   211,071


21.3 %


$   365,148


23.2 %


$   371,785


20.5 %

EMEA

51,595


18.2 %


38,826


13.5 %


72,051


14.1 %


68,605


13.4 %

Asia-Pacific

34,214


16.5 %


54,608


23.5 %


44,149


11.3 %


70,006


16.1 %

Latin America

12,171


25.9 %


13,615


25.4 %


27,342


24.6 %


19,392


17.7 %

Corporate Other (2)

(142,159)


NM


(178,647)


NM


(635,338)


NM


(367,892)


NM

Income (loss) from operations

$   173,080


12.4 %


$   139,473


8.9 %


$ (126,648)


(4.9) %


$   161,896


5.6 %


(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 September 30, 2024, and March 31, 2024

(Unaudited; in thousands)
 

CONDENSED CONSOLIDATED BALANCE SHEETS






in '000s


September 30, 2024


March 31, 2024

Assets





Current assets





Cash and cash equivalents


$                           530,701


$                           858,691

Accounts receivable, net


723,042


757,339

Inventories


1,105,884


958,495

Prepaid expenses and other current assets, net


210,109


289,157

Total current assets


2,569,736


2,863,682

Property and equipment, net


677,400


664,503

Operating lease right-of-use assets


415,386


434,699

Goodwill


495,029


478,302

Intangible assets, net


6,092


7,000

Deferred income taxes


241,502


221,033

Other long-term assets


89,448


91,515

Total assets


$                         4,494,593


$                        4,760,734

Liabilities and Stockholders' Equity





Current maturities of long-term debt


$                                      —


$                             80,919

Accounts payable


562,582


483,731

Accrued expenses


292,259


287,853

Customer refund liabilities


144,983


139,283

Operating lease liabilities


135,691


139,331

Other current liabilities


45,614


34,344

Total current liabilities


1,181,129


1,165,461

Long-term debt, net of current maturities


594,592


594,873

Operating lease liabilities, non-current


601,497


627,665

Other long-term liabilities


132,174


219,449

Total liabilities


2,509,392


2,607,448

Total stockholders' equity


1,985,201


2,153,286

Total liabilities and stockholders' equity


$                        4,494,593


$                        4,760,734

 

Under Armour, Inc.

For the Six Months Ended September 30, 2024 and 2023

(Unaudited; in thousands)

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




Six Months Ended September 30,


2024


2023

Cash flows from operating activities




Net income (loss)

$            (135,044)


$              114,721

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




Depreciation and amortization

65,565


68,287

Unrealized foreign currency exchange rate (gain) loss

(14,535)


21,145

Loss on disposal of property and equipment

2,598


696

Non-cash restructuring and impairment charges

3,679


Amortization of bond premium and debt issuance costs

1,107


1,096

Stock-based compensation

28,468


23,357

Deferred income taxes

(6,400)


(10,788)

Changes in reserves and allowances

(607)


18,471

Changes in operating assets and liabilities:




Accounts receivable

31,461


(51,327)

Inventories

(144,058)


30,034

Prepaid expenses and other assets

23,950


(13,421)

Other non-current assets

9,428


47,671

Accounts payable

73,733


(120,353)

Accrued expenses and other liabilities

(107,102)


(71,161)

Customer refund liabilities

5,671


(11,244)

Income taxes payable and receivable

(6,323)


8,299

Net cash provided by (used in) operating activities

(168,409)


55,483

Cash flows from investing activities




Purchases of property and equipment

(91,503)


(75,384)

Sale of MyFitnessPal platform

50,000


45,000

Sale of MapMyFitness platform

8,000


Purchase of UNLESS COLLECTIVE, Inc., net of cash acquired

(9,788)


Net cash provided by (used in) investing activities

(43,291)


(30,384)

Cash flows from financing activities




Common shares repurchased

(40,000)


(50,000)

Repayment of long-term debt

(80,919)


Employee taxes paid for shares withheld for income taxes

(8,399)


(2,318)

Proceeds from exercise of stock options and other stock issuances

1,314


1,781

Payments of debt financing costs

(1,388)


Net cash provided by (used in) financing activities

(129,392)


(50,537)

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

14,023


(28,671)

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

(327,069)


(54,109)

Cash, cash equivalents and restricted cash




Beginning of period

876,917


726,745

End of period

$              549,848


$              672,636

 

Under Armour, Inc.

For the Three and Six Months Ended September 30, 2024

(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
September 30, 2024


Six Months Ended
September 30, 2024

Total Net Revenue




Net revenue growth - GAAP

(10.7) %


(10.4) %

Foreign exchange impact

0.5 %


0.3 %

Currency neutral net revenue growth - Non-GAAP

(10.2) %


(10.1) %





North America




Net revenue growth - GAAP

(12.9) %


(13.5) %

Foreign exchange impact

0.3 %


0.2 %

Currency neutral net revenue growth - Non-GAAP

(12.6) %


(13.3) %





EMEA




Net revenue growth - GAAP

(1.4) %


(0.7) %

Foreign exchange impact

— %


(0.2) %

Currency neutral net revenue growth - Non-GAAP

(1.4) %


(0.9) %





Asia-Pacific




Net revenue growth - GAAP

(10.5) %


(10.3) %

Foreign exchange impact

0.2 %


1.4 %

Currency neutral net revenue growth - Non-GAAP

(10.3) %


(8.9) %





Latin America




Net revenue growth - GAAP

(12.5) %


1.8 %

Foreign exchange impact

8.7 %


2.3 %

Currency neutral net revenue growth - Non-GAAP

(3.8) %


4.1 %





Total International




Net revenue growth - GAAP

(6.1) %


(4.4) %

Foreign exchange impact

0.9 %


0.7 %

Currency neutral net revenue growth - Non-GAAP

(5.2) %


(3.7) %

 

Under Armour, Inc.

For the Three and Six Months Ended September 30, 2024

(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 certain 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
September 30, 2024


Six months ended
September 30, 2024

GAAP selling, general and administrative expenses

$                         519,840


$                     1,357,157

Add: Impact of litigation settlement

12,954


(261,046)

Add: Impact of restructuring-related transformational expenses

(2,724)


(11,381)

Adjusted selling, general and administrative expenses

$                         530,070


$                     1,084,730

 

ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION





in '000s

Three months ended
September 30, 2024


Six months ended
September 30, 2024

GAAP income (loss) from operations

$                         173,080


$                       (126,648)

Add: Impact of litigation settlement

(12,954)


261,046

Add: Impact of restructuring charges

3,212


28,298

Add: Impact of restructuring-related transformational expenses

2,724


11,381

Adjusted income from operations

$                         166,062


$                         174,077

 

ADJUSTED NET INCOME (LOSS) RECONCILIATION





in '000s

Three months ended
September 30, 2024


Six months ended
September 30, 2024

GAAP net income (loss)

$                         170,382


$                       (135,044)

Add: Impact of litigation settlement

(12,954)


261,046

Add: Impact of restructuring charges

3,212


28,298

Add: Impact of restructuring-related transformational expenses

2,724


11,381

Add: Impact of provision for income taxes

(32,250)


(30,911)

Adjusted net income

$                         131,114


$                         134,770

 

ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION






Three months ended
September 30, 2024


Six months ended
September 30, 2024

GAAP diluted net income (loss) per share

$                               0.39


$                              (0.31)

Add: Impact of litigation settlement

(0.03)


0.60

Add: Impact of restructuring charges

0.01


0.06

Add: Impact of restructuring-related transformational expenses

0.01


0.03

Add: Impact of provision for income taxes

(0.08)


(0.07)

Adjusted diluted net income per share

$                               0.30


$                               0.31

 

Under Armour, Inc.

Outlook for the Year Ended March 31, 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 certain 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)


Year Ending March 31, 2025



Low end of estimate


High end of estimate

GAAP loss from operations


$                              (196)


$                              (176)

Add: Impact of litigation settlement


261


261

Add: Impact of charges under 2025 restructuring plan (1)


100


100

Adjusted income from operations


$                                165


$                                185

 

ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION






Year Ending March 31, 2025



Low end of estimate


High end of estimate

GAAP diluted net loss per share


$                             (0.51)


$                             (0.48)

Add: Impact of litigation settlement


0.60


0.60

Add: Impact of charges under 2025 restructuring plan (1)


0.23


0.23

Add: Impact of provision for income taxes


(0.08)


(0.08)

Adjusted diluted net income per share


$                               0.24


$                               0.27


(1) The estimated fiscal 2025 impact of the restructuring plan presented above assumes the midpoint of the Company's estimated range of fiscal 2025 restructuring and related charges under the total plan of $140-160 million.

 

Under Armour, Inc.

Outlook for the Quarter Ended December 31, 2024

(Unaudited; in millions, except per share amounts)


The tables below reconcile the company's third quarter fiscal 2025 outlook, presented in accordance with GAAP, to
certain 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 December 31, 2024



Low end of estimate


High end of estimate

GAAP income from operations


$                                 (13)


$                                   (3)

Add: Estimated impact of charges under 2025 restructuring plan


33


33

Adjusted income from operations


$                                  20


$                                  30

 

ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION






Quarter Ending December 31, 2024



Low end of estimate


High end of estimate

GAAP diluted net income per share


$                             (0.07)


$                             (0.05)

Add: Estimated impact of charges under 2025 restructuring plan


0.08


0.08

Add: Impact of provision for income taxes


0.01


0.01

Adjusted diluted net income per share


$                               0.02


$                               0.04

 

Under Armour, Inc.

As of September 30, 2024, and 2023
 

COMPANY-OWNED & OPERATED DOOR COUNT






September 30,



2024


2023

Factory House


180


178

Brand House


16


19

   North America total doors


196


197






Factory House


177


172

Brand House


73


81

   International total doors


250


253






Factory House


357


350

Brand House


89


100

   Total doors


446


450

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/under-armour-reports-second-quarter-2025-results-raises-fiscal-2025-outlook-302298200.html

SOURCE Under Armour, Inc.

FAQ

What was Under Armour's (UA) revenue in Q2 2025?

Under Armour's revenue in Q2 2025 was $1.4 billion, representing an 11% decrease compared to the previous year.

How much did Under Armour's (UA) eCommerce revenue decline in Q2 2025?

Under Armour's eCommerce revenue decreased by 21% in Q2 2025, representing 30% of the total direct-to-consumer business.

What is Under Armour's (UA) updated restructuring plan cost for 2025?

Under Armour increased its restructuring plan range to $140-160 million, with up to $75 million in cash-related charges and up to $85 million in non-cash charges.

What is Under Armour's (UA) gross margin for Q2 2025?

Under Armour's gross margin increased 200 basis points to 49.8% in Q2 2025.

Under Armour, Inc. Class C

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