Overview
- Under Armour reported on Friday that revenue for the quarter ended Sept. 30 fell 7% to $1.2 billion and net loss narrowed to $425,000 while adjusted results were roughly break-even.
- Sales declined across categories with apparel down 6% to $880 million, footwear down 11% to $234 million and accessories down 7%, and major regions including North America, EMEA and Asia-Pacific all showed declines.
- Inventory rose about 4% against falling revenue, prompting management to cut future buys and pursue sell-through actions that analysts warn will likely force markdowns and pressure second-half margins.
- Management reiterated mid-single-digit full-year revenue declines, trimmed gross-margin improvement to 170–220 basis points with roughly 150 bps tied to tariff refunds, and forecast adjusted operating profit of $140–$160 million with EPS of minus 2 to plus 2 cents.
- The company has logged about $280 million in restructuring costs so far and is pushing product simplification, a footwear-led strategy, shorter supplier lead times and AI-driven planning as the test of whether it can regain retail momentum, but investors reacted with a sharp share drop and analysts remain skeptical about the timing of a recovery.