Under Armour Inc (UAA) Q1 2025 Earnings Report

Under Armour (UAA) reported QQ1 2025 results showing a revenue decline of 10% to $1.1836 billion, with a gross margin of 47.5% (up 110 bps year-over-year) driven by reduced discounting and favorable cost dynamics, but an ensuing operating loss of $299.7 million (GAAP) and a diluted loss per share of $0.70. Management emphasized the brand’s strategic pivot toward a premium, “sports house” positioning under the Protect This House framework and the ongoing SKU rationalization program aimed at trimming roughly 25% of product SKUs over the next 18 months. The quarter featured meaningful leadership additions (Eric Liedtke as EVP of Brand Strategy) and a sharpened focus on marketing effectiveness, elevated storytelling, and a deeper direct-to-consumer (DTC) propulsion for long-term profitability. Near-term guidance calls for a low-double-digit revenue decline for the full year with an 75–100 bps gross margin expansion, an adjusted operating income of $140–$160 million, and adjusted EPS of $0.19–$0.22. Management expects North America to be down 14–16% in FY25, with APAC under continued pressure, and projects roughly $500 million of cash by year-end with no revolver borrowings. The company remains financially healthy on a balance sheet, showing a cash position around $885 million and net debt of approximately $289 million (net cash), following debt repayments and share repurchases in Q1. The narrative is one of sequential execution risk but with a plausible path to higher brand equity and incremental margins as the SKU plan, marketing transformation, and premium product strategy mature.