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%.

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

• Net income was $1–1.2 million; adjusted net income reached $35 million, with adjusted operating income at $60 million.

• Company is executing a multi-year marketing initiative and restructuring plan, including new leadership, category-managed model, and significant investments in product innovation.

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

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% to $638 million, driven by higher marketing, IT, and restructuring-related costs.

• Adjusted operating income was $60 million; reported operating income was $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, with no outstanding credit facility borrowings.

Outlook and guidance

• Fiscal 2025 revenue expected to decline ~10%, with North America down 12–13% and international down mid-single digits.

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

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

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

• Fourth quarter expected to face headwinds from order book softness, APAC challenges, and currency impacts.