From Yahoo Finance: 2025-05-14 06:24:00

American sportswear brand Under Armour reported a 9% revenue decrease in FY25, totaling $5.16bn, with North American revenue down 11% and international revenue down 6%. Retail outlets saw a 2% revenue decrease, while e-commerce faced a 23% reduction due to promotional cuts.

Despite revenue decline, Under Armour’s gross margin rose to 47.9% in FY25, attributed to supply chain efficiencies and decreased discounting. The company reported an operating loss of $185.22m, a significant contrast to the previous year’s operating income.

In Q4 of FY25, revenues fell by 11%, with North American and international revenues dropping by 11% and 13%. Gross margin improved to 46.7%, with an operating loss of $72.08m.

By the end of Q4 FY25, Under Armour had incurred $58m in restructuring and impairment charges. The company’s ongoing restructuring plan is expected to cost between $140m and $160m.

In the first quarter of fiscal 2026, Under Armour anticipates a 4-5% revenue decline compared to Q1 FY25. Gross margin is projected to improve by 40-60 basis points, with operating income estimated between $5m and $15m.

CEO Kevin Plank stated that the company’s performance in Q4 FY25 exceeded expectations, showing progress in repositioning the brand. Despite uncertainties in trade policies, Under Armour is focused on navigating challenges in fiscal 2026.

Read more: Under Armour reports revenue dip and gross margin growth in FY25