Under Armour Stock Earnings Reports

Under Armour reported Q3 FY2025 results above its November outlook: revenue fell 6% to $1.4B (better than the ~10% decline previously guided) and gross margin improved 240 basis points to 47.5%. Management raised its full‑year revenue outlook (now expecting ~10% decline) and increased the full‑year gross margin improvement target to ~160 basis points. Q3 strength was driven by supply chain tailwinds (lower freight and product costs), improved DTC promotional discipline, and mix benefits from fewer off‑price sales. Key strategic initiatives highlighted: tighter SKU assortment (targeting ~25% reduction), a transition to a category‑led operating model with clearer accountability, increased brand/marketing investments focused on young team‑sport athletes and culturally relevant content, and product innovation (Curry Brand Fox 1 debut, SlipSpeed Echo launch). Regional notes: North America saw an 8% revenue decline as DTC eCommerce intentionally pulled back promotions; EMEA grew modestly; APAC faced competitive and promotional headwinds. Inventory remained roughly flat at $1.1B; cash was $727M; the company repurchased $25M of Class C stock in the quarter. Restructuring charges YTD total $57M with an expected $140–160M in total charges (split between FY25 and FY26). Management warns Q4 faces headwinds from spring/summer order book, APAC softness and forex exposure, but emphasizes the multi‑quarter journey to restore pricing power, premium mix and long‑term profitable growth. Additional datapoints: North America loyalty membership added 4M to reach 17M members.