- Under Armour’s QQ3 2025 revenue declined 5.7% year-over-year to $1.401 billion, better than the prior-year trough and ahead of the company’s November guidance implying a down mid-to-high single digits. The result was driven by improved gross margin and stronger-than-expected DTC performance, reflecting the company’s ongoing discipline in promotions and a shift toward premium product and better-better-best assortments.
- Gross margin expanded 240 basis points YoY to 47.5%, supported by supply chain benefits (roughly 100 bps), pricing benefits from reduced discounting in DTC (roughly 100 bps), favorable mix and currency benefits (approx. 45 bps total). Despite margin strength, operating income was modest at $14 million reported, as the quarter included $28 million impairment and $14 million restructuring charges, which the company expects to total $140–$160 million for fiscal 2025/2026. Adjusted operating income was $60 million and adjusted diluted EPS was $0.08 for the quarter.
- Management raised the FY2025 outlook modestly, guiding to ~10% revenue decline for the year (vs. prior low-double-digit decline), with improved North America performance and flat EMEA, plus a low-teens decline in APAC. Full-year adjusted EPS guidance was raised to $0.28–$0.30, implying a roughly $0.03 midpoint improvement.
- Management emphasis on a category-led operating model, price/power strategy, and a broader shift of marketing dollars toward brand-building assets suggests a longer path to profitability but with improving brand equity, pricing power, and loyalty engagement (4 million new North American members in the quarter). The company remains focused on reducing SKUs, accelerating premium product introductions (e.g., SlipSpeed Echo, Curry Brand footwear), and centralizing marketing to drive authentic consumer connections.
- Near-term risk remains: APAC demand dynamics, currency headwinds, and the challenge of balancing a path to growth in North America with ongoing restructuring and channel discipline. Investors should monitor progress in North American DTC, SKU optimization, and the ramp of new product launches as catalysts for a broader revenue inflection.