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Sep 30, 2024
Under Armour Q2 2025 Earnings Report
Announced second quarter fiscal 2025 results, demonstrating progress in brand reconstitution and premium positioning strategy.
Key Takeaways
Under Armour's second quarter fiscal 2025 results showed a revenue decrease of 11% to $1.4 billion, but gross margin increased by 200 basis points to 49.8%. The company raised its full-year profitability outlook while increasing marketing investments.
Revenue decreased by 11% to $1.4 billion, or 10% on a currency-neutral basis.
Gross margin increased 200 basis points to 49.8%, driven by lower product and freight costs, reduced discounting, and favorable channel mix.
Operating income was $173 million, and net income was $170 million.
The company raised its full-year profitability outlook and increased marketing investments.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour expects revenue to decline at a low double-digit percentage rate. Gross margin is expected to increase by 125 to 150 basis points. Adjusted diluted earnings per share is expected to be between $0.24 and $0.27.
Positive Outlook
- Gross margin is expected to increase by 125 to 150 basis points.
- Increase is driven primarily by reduced promotional and discounting activities.
- Increase is driven by product costing benefits.
- Adjusted selling, general, and administrative expenses are expected to decrease at a low-to-mid single-digit percentage rate, excluding certain expenses.
- Approximately $25 million in additional marketing investments following better-than-expected year-to-date profitability performance.
Challenges Ahead
- Revenue is expected to decline at a low double-digit percentage rate.
- North America revenue is expected to decline 14 to 16 percent.
- International business expects a low single-digit percent decline.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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