However, Under Armour Inc is seeing growth in its loyalty program, with 4 million new members added in North America, demonstrating higher repurchase rates and revenue per consumer.
(Image Source)
GLOHighlights:
-
Revenue: Declined 6% to $1.4 billion, better than the expected 10% decline.
-
North America Revenue: Decreased 8%, mainly due to a decline in DTC business.
-
EMEA Revenue: Increased 5% (3% currency-neutral), with growth in DTC and full-price wholesale.
-
APAC Revenue: Fell 5% (6% currency-neutral) due to a competitive and promotional landscape.
-
Latin America Revenue: Declined 16% (9% currency-neutral), mainly due to lower distributor sales.
-
Gross Margin: Increased 240 basis points to 47.5%, driven by supply chain benefits and reduced discounting.
-
SG&A Expenses: Rose 6% to $638 million, with adjusted SG&A at $606 million, up 5%.
-
Operating Income: $14 million; adjusted operating income was $60 million.
-
Adjusted Diluted EPS: $0.08 for the quarter.
-
Inventory: Flat at $1.1 billion compared to last year.
-
Cash Balance: $727 million at the end of the third quarter.
-
Stock Repurchase: $25 million of Class C stock, retiring 2.8 million shares.
-
Fiscal ’25 Outlook: Revenue expected to decline approximately 10%; adjusted diluted EPS expected to be $0.28 to $0.30.
Positive Points
-
Under Armour Inc (NYSE:UAA) exceeded expectations for the third quarter, with revenue and gross margin surpassing forecasts.
-
The company raised its full-year outlook, indicating confidence in its strategic repositioning efforts.
-
Significant progress was made in enhancing product offerings, particularly in athletic performance and sportswear.
-
The launch of new products, such as the Curry brand’s Fox 1 shoe and the SlipSpeed Echo footwear, has generated positive buzz.
-
Under Armour Inc. is seeing growth in its loyalty program, with 4 million new members added in North America, demonstrating higher repurchase rates and revenue per consumer.
Negative Points
-
North America experienced an 8% revenue decline, primarily due to decreased direct-to-consumer business and lower eCommerce sales.
-
APAC revenue fell by 5%, with challenges arising from a competitive market and increased discounting.
-
Latin America saw a 16% revenue decline, mainly due to lower distributor sales.
-
The company is facing headwinds in the fourth quarter, including a softer order book and pressures in the APAC region.
-
SG&A expenses rose by 6%, driven by higher marketing expenses and incentive compensation, partially offset by cost management efforts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Disclaimer: Press release
© Press Release 2025
Send us your press releases to news@globalloyalty.org
Press releases originate from external third-party providers. This website does not have responsibility or control over its content, which is presented as is, without any alterations. Neither this website nor its affiliates guarantee the accuracy of the views or opinions expressed in the press release.
The press release is intended solely for informational purposes and does not offer tax, legal, or investment advice, nor does it express any opinion regarding the suitability, value, or profitability of specific securities, portfolios, or investment strategies. Neither this website nor its affiliates are liable for any errors or inaccuracies in the content, nor for any actions taken based on it. By using the information provided in this article, you agree to do so at your own risk.
To the maximum extent permitted by applicable law, this website, its parent company, subsidiaries, affiliates, shareholders, directors, officers, employees, agents, advertisers, content providers, and licensors shall not be liable to you for any direct, indirect, consequential, special, incidental, punitive, or exemplary damages, including but not limited to lost profits, savings, and revenues, whether in negligence, tort, contract, or any other theory of liability, even if the possibility of such damages was known or foreseeable.
The images used in press releases and articles provided by 3rd party sources belong to the respective source provider and are used for illustrative purposes in accordance with the original press releases and publications.
Disclaimer: Content
While we strive to maintain accurate and up-to-date content, Global Loyalty Organisation Ltd. makes no representations or warranties of any kind, express or implied, about the correctness accuracy, completeness, adequacy, or reliability of the information or the results derived from its use, not that the content will meet your requirements or expectations. The content is provided “as is” and “as available”. You agree that your use of the content is at your own risk. Global Loyalty Organisation Ltd. disclaims all warranties related to the content, including implied warranties of merchantability, fitness for a particular purpose, non-infringement, and title, and is not liable for a particular purpose, non-infringement, and title, and is not liable for any interruptions. Some jurisdictions do not allow the exclusion of certain warranties, so these jurisdictions may not apply to you. Global Loyalty Organisation Ltd. Reserves the right to modify, interrupt, or discontinue the content without notice and is not liable for doing so.
Global Loyalty Organisation Ltd. shall not be liable for any damages, including special, indirect, consequential, or incidental damages, or damages for lost profits, revenue, or use, arising out of or related to the content, whether in contract, negligence, tort, statute, equity, law, or otherwise, even if advised of such damages. Some jurisdictions do not allow limitations on liability for incidental or consequential damages, so this limitation may not apply to you. These disclaimers and limitations apply to Global Loyalty Organisation Ltd. and its parent, affiliates, related companies, contractors, sponsors, and their respective directors, officers, members, employees, agents, content providers, licensors, and advisors.
The content and its compilation, created by Global Loyalty Organisation Ltd, are the property of Global Loyalty Organisation Ltd. and cannot be reproduced without prior written permission.
