NYSE$UA

Under Armour · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Under Armour's Q1 2025 results exceeded expectations, with progress in brand positioning and alignment, despite a revenue decrease.

Under Armour reported a 10% decrease in revenue to $1.2 billion for Q1 2025, but results were ahead of expectations. The company saw improvements in gross margin due to reduced discounting and lower product costs. A net loss of $305 million was reported, influenced by a litigation reserve, while adjusted net income was $4 million.

  • Revenue decreased by 10% to $1.2 billion, with North America down 14% and international down 2%.
  • Gross margin increased by 110 basis points to 47.5% due to lower discounting and product costs.
  • Net loss was $305 million, or $0.70 per share, while adjusted net income was $4 million, or $0.01 per share.
  • The company repurchased $40 million of Class C common stock, with $460 million remaining under the share repurchase authorization.

Headline financials

Total Revenue

$1.18B

Previous: $1.32B-10.1%
EPS

-$0.70

Previous: $0.02-3600.0%
Gross Margin

47.5%

Previous: 46.1%+3.0%
SG&A Expenses

$837M

No prior period
Capital Expenditures

-$45.7M

Previous: -$39.6M-15.4%
Free Cash Flow

$107M

Previous: -$38.6M+378.3%
Net Income

-$305M

Previous: $8.55M-3672.7%
Operating Income

-$300M

Previous: $20.9M-1532.0%
Gross Profit

$563M

Previous: $608M-7.4%
Cash & Equivalents

$885M

Previous: $704M+25.7%
Total Assets

$4.86B

Previous: $4.87B-0.1%
Stock-Based Comp

$15.9M

Previous: $11.8M+35.2%

Revenue & EPS history

Under Armour · Revenue · Quarterly

$1.18B

Q1 2025-10.1%vs Q1 2024
Beat estimate in 11 of 11 quarters(100%)
ActualEstimate

Revenue by segment

Under Armour · $1.57B total across 3 segments · Q2 2024

  • Apparel
    $1.1B+5.9%
  • Footwear
    $351M-6.6%
  • Accessories
    $114M+2.6%

Forward guidance

Under Armour provided its fiscal year 2025 outlook, anticipating a low double-digit percentage decrease in revenue. Gross margin is expected to increase by 75 to 100 basis points. Operating loss is projected to be $194 to $214 million, with an adjusted operating income of $140 to $160 million. Diluted loss per share is expected to be between $0.53 and $0.56, while adjusted diluted earnings per share are expected to be between $0.19 and $0.22. Capital expenditures are estimated to be $200 to $220 million.

Tailwinds

  • Gross margin is expected to be up 75 to 100 basis points compared to the prior year, driven by a material reduction in promotional and discounting activities in the company’s direct-to-consumer business and product costing benefits.
  • Adjusted operating income is expected to be $140 to $160 million versus the previous expectation of $130 to $150 million.
  • Adjusted diluted earnings per share are expected to be between $0.19 and $0.22.
  • Revenue decline in North America is expected to be 14 to 16 percent, an improvement from the previously expected 15 to 17 percent decline.
  • Capital expenditures are expected to be between $200 to $220 million.

Headwinds

  • Revenue is expected to be down at a low double-digit percentage rate.
  • North America revenue is expected to decline by 14 to 16 percent.
  • International business is expected to see a low-single-digit percent decline.
  • EMEA is expected to be flat, offset by a high-single digit decline in Asia-Pacific due to developing macroeconomic pressures.
  • Selling, general and administrative expenses are expected to be up at a mid-to-high-single digit percent rate due to litigation expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.5%

Avg return

Earnings day

-2.7%

Avg return

5 days after

-2.0%

Avg return

30 days after

54%

22 / 41 earnings

Positive

+24.6%

Q4 2015

Best reaction

-27.8%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-16.8%-15.0%-1.2%
Q3 2026+19.3%+9.8%+4.2%
Q2 2026-1.1%+0.7%-1.6%
Q4 2025+1.7%+7.8%+9.2%
Q3 2025-4.6%-10.3%-12.7%
Q2 2025+8.7%+6.8%+12.3%
Q1 2025+22.3%+24.7%+19.6%
Q4 2024-0.5%-0.6%-2.0%
Q3 2024+4.8%+3.2%+7.5%
Q2 2024+1.0%-1.8%+19.0%
Q1 2024+1.3%+1.3%-6.4%
Q4 2023-10.1%-10.6%-11.6%
Q3 2023-10.9%-12.4%-27.2%
Q2 2023+16.0%+12.5%+42.1%
Q1 2023+1.2%+5.6%-10.2%
Q1 2022-27.8%-30.9%-24.2%
Q4 2021-12.8%-12.7%-19.2%
Q3 2021+18.2%+12.1%+4.9%
Q2 2021+13.3%+16.9%+11.6%
Q1 2021+6.3%+1.8%-4.1%
Q4 2020+9.5%+7.4%+10.9%
Q3 2020+6.1%+6.1%+22.2%
Q2 2020-13.7%-7.3%-10.2%
Q1 2020-14.1%-22.7%+5.4%
Q4 2019-14.9%-14.9%-51.8%
Q3 2019-13.7%-16.0%-10.0%
Q2 2019-16.6%-21.3%-30.5%
Q1 2019+2.8%-0.9%+2.8%
Q4 2018+3.8%-0.6%+3.9%
Q3 2018+18.0%+27.4%+29.4%
Q2 2018-2.3%-5.1%-0.2%
Q1 2018+6.6%+2.5%+23.3%
Q4 2017+22.5%+19.7%+4.9%
Q3 2017-23.4%-28.2%-19.1%
Q2 2017-9.1%-8.3%-16.6%
Q1 2017+7.0%+3.3%-0.4%
Q4 2016-25.1%-27.5%-24.4%
Q3 2016-16.1%-21.2%-27.3%
Q2 2016-8.9%-7.9%-1.3%
Q1 2016+6.9%
Q4 2015+24.6%
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q2 2011
Q3 2011
Q1 2010
Q1 2011
Q4 2010
Q4 2008
Q3 2009
Q3 2010
Q2 2009
Q4 2009
Q2 2010

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