Under Armour reports decline in revenue for Q4 & FY25, with improved gross margins.

From Yahoo Finance: 2025-05-14 07:23:00

Under Armour experienced a downturn in FY25, with North American revenues dropping by 11% and international revenues by 6%. E-commerce revenues fell by 23% due to reduced promotional activities. Apparel revenues decreased by 9%, footwear by 13%, but accessories saw a 1% increase. Gross margins improved by 180 basis points to 47.9% due to supply chain efficiencies. Net loss was $201.27m. For Q4, revenue declined by 11% with North American revenue down by 11% and international revenue by 13%. Gross margin increased by 170 basis points to 46.7%. Net loss for Q4 was $67.46m, with an adjusted net loss of $35m. Under Armour recognized $58m in restructuring and impairment charges by the end of Q4 FY25. The plan announced in May 2024 is expected to incur costs ranging from $140m to $160m. Under Armour provided guidance only for Q1 of fiscal 2026, projecting a revenue decrease of 4-5% compared to Q1 FY25. Gross margin is expected to improve by 40-60 basis points. Chief financial officer David Bergman indicated proactive measures in anticipation of significant impacts from shifts in trade policy. Under Armour’s global sourcing distribution includes Vietnam at 30%, Jordan at 20%, and Indonesia at 15%. Bergman highlighted deliberate diversification to reduce reliance on any single market. Changes in tariff policy are not expected to significantly impact the first quarter.



Read more at Yahoo Finance: Under Armour sees Q4 & FY25 revenue dip, shares tariff mitigation