Under Armour, Inc. has recently released its 10-K report, providing a detailed look at its financial performance and operations. Under Armour is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories for men, women, and youth. The company operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour primarily offers its products under brands such as UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA.
In ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Under Armour reported a challenging environment in Fiscal 2025, particularly in North America and Asia-Pacific, with lower demand in the wholesale channel and impacts of proactive strategies to reduce discounting and promotional activity in the direct-to-consumer channel, particularly in e-commerce. Financial highlights for Fiscal 2025 included a 9.4% decrease in total net revenues, with wholesale revenue down 8.1% and direct-to-consumer revenue down 10.5%. Apparel revenue decreased 8.9%, footwear revenue decreased 12.8%, and accessories revenue increased 1.3%. Gross margin increased by 180 basis points to 47.9%, while selling, general and administrative expenses increased by 8.4%.
Under Armour also outlined a restructuring plan approved by its Board of Directors in 2024, with an expected restructuring and related charges of approximately $140 million to $160 million, substantially complete by the end of Fiscal 2026. The plan includes cash-related charges for employee severance and benefits costs, as well as non-cash charges for facility, software, and other asset-related charges and impairments.
The company highlighted that it is actively monitoring the global trade environment and macroeconomic factors, including inflationary pressures and fluctuations in foreign currency exchange rates, which may impact its financial results. Under Armour expects these changes to have a material impact on its results of operations, including gross profit, in Fiscal 2026. The company also reported a decrease in net revenues by product category and distribution channel, with net sales decreasing by $509.9 million, or 9.1%, during Fiscal 2025, and license revenues decreasing by $16.7 million or 15.0%.
As a result of these announcements, the company's shares have moved 3.91% on the market, and are now trading at a price of $6.775. If you want to know more, read the company's complete 10-K report here.
