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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.
Revenue by Segment
Revenue by Geographic Location
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.
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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