#United States #Baltimore #Fiscal 2025 #Under Armour #Kevin Plank

Under Armour Reports Fourth Quarter Fiscal 2025 Results

On May 13, 2025, Under Armour, Inc. announced its financial results for the fourth quarter and the complete fiscal year 2025, which came to a close on March 31, 2025. According to the report, the company's performance shows a continuing effort to rejuvenate its brand amidst various challenges in the marketplace.

Overview of Fourth Quarter Financial Results

In the fourth quarter, Under Armour's revenue decreased by 11% to $1.2 billion, with North American revenue also down 11% to $689 million, while international revenue fell by 13% to $489 million. The declines were noted across several regions, reflecting the company's struggles in the Asia-Pacific market particularly hard-hit with a 27% drop.

This quarter saw notable declines in wholesale revenue, which fell 10%, while direct-to-consumer revenue decreased by 15%. Among product categories, apparel revenue showed an 11% dip, footwear experienced a 17% decline, but accessories managed a slight increase of 2%.

Despite these setbacks, Under Armour reported a 170 basis point increase in gross margin, suggesting improvements in supply chain management and cost controls. However, total selling, general, and administrative expenses saw an increase of 1%, signaling higher operational costs.

Unfortunately, the company faced a net loss of $67 million for the quarter, translating to a diluted loss per share of $0.16. Adjusted measures, excluding certain transformation expenses, pointed to a less severe loss, but overall the financial performance was below expectations set a year prior.

Full Fiscal Year 2025 Performance

For the entire fiscal year, Under Armour reported a 9% decline in revenue, totaling $5.2 billion. This was driven by an 11% drop in North American revenues and a 6% decline in international revenue. The financial report indicated significant restructuring costs, amounting to $58 million, as part of an initiative to enhance operational efficiency.

The clothing segment remained the largest contributor to revenue but also reflected significant challenges, with footwear and accessories reporting declines as well. This led to an operating loss of $185 million for the year.

Restructuring Efforts and Future Outlook

Kevin Plank, the President and CEO of Under Armour, emphasized the company’s strategic reset aimed at refocusing its operations, enhancing product offerings, and tightening its distribution. The results from the fourth quarter of fiscal 2025 have laid down a concrete foundation toward this goal.

Looking ahead, Under Armour provided an outlook for the first quarter of fiscal 2026, forecasting a revenue decrease of approximately 4 to 5% over the same period last year. In contrast, growth is expected in the EMEA region, reflecting potential recovery in specific markets.

The company also anticipates that gross margins will improve due to a favorable product mix and reduced costs; however, the operational fostering comes amidst uncertainties related to evolving economic conditions and trade impacts.

Conclusion

As Under Armour navigates its financial recovery, the market will be keenly observing how its restructuring plans roll out and whether the company can establish a more sustainable growth trajectory going forward. The firm remains focused on realigning its brand and operational strategies to better respond to the dynamic retail environment.