Under Armour Inc – Class A ( (UAA) ) has released its Q2 earnings. Here is a breakdown of the information Under Armour Inc – Class A presented to its investors.
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Under Armour, Inc., based in Baltimore, Maryland, is a prominent designer and distributor of athletic performance apparel, footwear, and accessories, known for its innovative products aimed at enhancing athletic performance.
In its latest earnings report for the second quarter of fiscal 2025, Under Armour announced a decline in revenue but highlighted a strategic shift towards premium positioning in the market. The company also raised its full-year profitability outlook, reflecting confidence in its redefined brand strategy.
Key financial metrics revealed an 11% decrease in revenue to $1.4 billion, with North American revenues falling by 13% and international revenues by 6%. Despite revenue declines, Under Armour achieved a gross margin increase of 200 basis points to 49.8%, attributed to lower product and freight costs and reduced discounting. Operating income reached $173 million, while net income stood at $170 million, with adjusted figures slightly lower due to restructuring charges. The company’s restructuring plan aims to enhance operational efficiency, with a focus on exiting certain distribution facilities, and anticipates further restructuring charges over the next fiscal year.
Under Armour’s management is optimistic about the future, expecting a continued increase in gross margins and adjusted operating income despite anticipated revenue declines. The company’s restructuring efforts and increased marketing investments are expected to bolster its brand positioning and financial performance in the coming years.
