The earnings call highlighted Under Armour's profitability ahead of expectations and significant improvements in gross margin. However, the company faced challenges with an overall decline in revenue across major markets and segments, particularly in North America and e-commerce. There is optimism around team sports performance and strategic transformations in various areas, including a growing loyalty program.

Company Guidance

During the Under Armour Q2 2025 earnings call, guidance reflected a positive outlook, with significant metrics highlighting the company's performance and future strategy. The company reported a $50 million adjusted operating income beat compared to their previous outlook, dividing the surplus to enhance their fiscal 2025 adjusted operating income outlook and invest in marketing and brand-building efforts. Revenue for Q2 was down 11% to $1.4 billion, with North America experiencing a 13% decline due to softer full-price wholesale demand and reduced sales in the off-price channel. However, the gross margin improved by 200 basis points to 49.8%, driven by lower product costs, reduced off-price sales, and decreased discounting and promotions. Adjusted operating income reached $166 million, and diluted earnings per share were $0.39. Looking ahead, Under Armour anticipates full-year revenue to decline at a low double-digit rate but has raised its gross margin improvement outlook to 125-150 basis points. The company expects to continue focusing on reducing promotional activities, SKU rationalization, and enhancing its premium brand positioning to drive long-term sustainable growth.

Profitability Ahead of Expectations

Under Armour achieved profitability ahead of their outlook, with a $50 million second quarter adjusted operating income beat compared to the outlook.

Gross Margin Improvement

Gross margin increased by 200 basis points to 49.8%, driven by supply chain benefits, a favorable channel mix, and pricing benefits due to lower discounting and promotions.

Strong Performance in Team Sports

Solid performance from cleated products in baseball and American football, as well as strong reception for Curry brand footwear.

E-Commerce Business Transformation

E-commerce business is moving towards a more premium position with full price sales now representing about 50% of e-commerce revenue, up from 30% a year ago.

Loyalty Program Growth

UA Rewards program members account for roughly half of U.S. DTC revenue, with a doubled 90-day repurchase rate compared to nonmembers.

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Under Armour (UA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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UA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 26, 2018	2018 (Q2)	- / -0.08	-0.03	-166.67% (-0.05)	―	―
Oct 30, 2018	2018 (Q3)	- / 0.25	0.22	13.64% (+0.03)	―	―
Feb 12, 2019	2018 (Q4)	- / 0.09	0	―	―	―
May 02, 2019	2019 (Q1)	- / 0.05	0	―	―	―
Jul 30, 2019	2019 (Q2)	- / -0.04	-0.08	50.00% (+0.04)	―	―
Nov 04, 2019	2019 (Q3)	- / 0.23	0.25	-8.00% (-0.02)	―	―
Feb 11, 2020	2019 (Q4)	- / 0.10	0.09	11.11% (+0.01)	―	―
May 11, 2020	2020 (Q1)	- / -0.34	0.05	-780.00% (-0.39)	―	―
Jul 31, 2020	2020 (Q2)	- / -0.31	-0.04	-675.00% (-0.27)	―	―
Oct 30, 2020	2020 (Q3)	- / 0.26	0.23	13.04% (+0.03)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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UA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$8.06	$9.94	+23.33%
Aug 08, 2024	$6.27	$7.42	+18.34%
May 16, 2024	$6.66	$6.64	-0.30%
Feb 08, 2024	$7.48	$7.46	-0.27%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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