Under Armour sees Q4 & FY25 revenue dip, shares tariff mitigation

Jangoulun Singsit

Wed, May 14, 2025, 4:23 AM 4 min read

Under Armour's downturn successful FY25 was observed crossed each regions, with the company's North American revenues falling by 11%. The planetary conception besides experienced a decrease, with revenues contracting by 6% to scope $2.1bn.

Revenues generated from owned and operated stores saw a 2% dip, portion e-commerce revenues plummeted by 23%, attributed to deliberate reductions successful promotional activities.

In presumption of merchandise categories, apparel revenues decreased by 9% to $3.5bn, footwear followed suit with a 13% diminution to $1.2bn, whereas accessories bucked the inclination with a humble 1% summation to $411m.

Under Armour president and CEO Kevin Plank said: "One twelvemonth into our strategical reset, we're laying the groundwork for a much focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are successful the process of reigniting marque relevance and positioning the concern for sustainable, profitable growth. Our 4th fourth show contributed to fiscal 2025 results that were amended than the expectations we acceptable a twelvemonth agone and we are demonstrating traction successful our efforts to reposition the brand."

Looking astatine gross margins for FY25, Under Armour reported an betterment of 180 ground points to 47.9%. This was credited chiefly to proviso concatenation efficiencies that led to decreased freight and merchandise costs, alongside reduced discounting successful direct-to-consumer sales.

However, these gains were partially negated by adverse effects from changes successful determination and transmission premix arsenic good arsenic overseas currency speech complaint fluctuations.

Net nonaccomplishment for the twelvemonth was recorded astatine $201.27m compared to a nett income of $232.04m successful the anterior fiscal year. However, erstwhile adjusted for circumstantial items, nett income was astatine $135m.

This translates to diluted nonaccomplishment per stock of $0.47 successful FY25 compared to net per stock of $0.52 successful fiscal 2024.

Under Armour saw an 11% gross diminution with North American gross decreasing by 11%, and planetary gross falling by 13%. Revenue from owned and operated stores declined by 6%, portion e-commerce gross dropped importantly by 27% owed to continued planned reductions successful promotional activities.

The gross borderline for Q4 accrued by 170 ground points to 46.7%, chiefly driven by proviso concatenation benefits specified arsenic little merchandise and freight costs and reduced discounting successful direct-to-consumer sales.

Net nonaccomplishment for Q4 was reported astatine $67.46m with an adjusted nett nonaccomplishment of $35m. Diluted nonaccomplishment per stock was astatine $0.16 portion adjusted diluted nonaccomplishment per stock was astatine $0.08.