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Dec 31, 2024
Under Armour Q3 2025 Earnings Report
Under Armour's Q3 2025 results exceeded expectations, driven by a focus on brand strengthening, updated product strategy, enhanced marketplace discipline, and a category-led operating model.
Key Takeaways
Under Armour reported a 6% decrease in revenue to $1.4 billion for Q3 2025, but gross margin increased by 240 basis points to 47.5%. The company's operating income was $14 million, with an adjusted operating income of $60 million. Net income was $1 million, and adjusted diluted earnings per share was $0.08. The company raised its fiscal year 2025 outlook.
Revenue decreased by 6 percent to $1.4 billion.
Gross margin increased 240 basis points to 47.5 percent.
Operating income was $14 million, with adjusted operating income at $60 million.
Adjusted diluted earnings per share was $0.08.
Under Armour
Under Armour
Under Armour Revenue by Segment
Under Armour Revenue by Geographic Location
Revenue by Segment
Apparel Revenue
CapyFin.comFootwear Revenue
CapyFin.comAccessories Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Under Armour updated its fiscal 2025 outlook, expecting revenue to decline by approximately 10%, with North America declining 12-13% and international sales decreasing mid-single-digits. Gross margin is expected to increase by approximately 160 basis points. Adjusted operating income is expected to be $185 to $195 million, and adjusted diluted earnings per share are expected to be $0.28 to $0.30.
Positive Outlook
- Revenue decline is expected to be approximately 10 percent, an improvement from the prior expectation of a low double-digit percentage decline.
- North America revenue is expected to decline 12 to 13 percent, better than the previous expectation of a 14 to 16 percent decline.
- Gross margin is expected to increase by approximately 160 basis points, driven by less direct-to-consumer discounting and lower product and freight costs.
- Adjusted selling, general, and administrative expenses are expected to decrease at a low single-digit percentage rate.
- Adjusted operating income is expected to be $185 to $195 million, compared to the prior expectation of $165 to $185 million.
Challenges Ahead
- Revenue is still expected to decline by approximately 10 percent.
- North America revenue is expected to decline 12 to 13 percent.
- International sales are expected to decrease mid-single-digits.
- Asia-Pacific region is expected to see a low-teen percent drop in revenue.
- Operating loss is expected to be $179 to $189 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income