Under Armour Inc – Class C ( (UA) ) has released its Q2 earnings. Here is a breakdown of the information Under Armour Inc – Class C presented to its investors.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Under Armour, Inc., headquartered in Baltimore, Maryland, is a prominent company in the athletic performance industry, known for its innovative apparel, footwear, and accessories designed to enhance human performance. In its latest earnings report for the second quarter of fiscal 2025, Under Armour highlighted a strategic shift towards establishing a premium market position, resulting in better-than-expected profitability and an updated fiscal outlook.
During the quarter, the company reported an 11% decrease in revenue to $1.4 billion, with North America experiencing a 13% decline, and international markets down by 6%. Despite the revenue drop, Under Armour achieved a significant improvement in gross margin, which increased by 200 basis points to 49.8%, driven by lower product costs and reduced discounting in direct-to-consumer sales. Additionally, selling, general, and administrative expenses saw a 15% decline, contributing to an operating income of $173 million.
Under Armour’s restructuring efforts, including exiting a distribution facility in California, are part of a broader strategy to enhance operational efficiency. The company has recognized $40 million in restructuring charges, with plans for additional restructuring actions in fiscal 2025 and 2026. Despite current challenges, Under Armour’s fiscal 2025 outlook anticipates a decline in revenue but an increase in gross margin, supported by reduced promotional activities and product cost benefits.
Looking forward, Under Armour’s management remains committed to its strategic initiatives, aiming to solidify its premium positioning in the market and drive long-term brand growth. The company expects to continue its marketing investments to bolster the brand, with a focus on executing its restructuring plans and enhancing financial performance in the coming fiscal periods.
