Under Armour, Inc. reported its fourth quarter and full year fiscal 2025 results on May 13, 2025. The company, headquartered in Baltimore, Maryland, is known for its athletic performance apparel, footwear, and accessories, aimed at enhancing human performance.

In the fourth quarter, Under Armour’s revenue decreased by 11% to $1.2 billion compared to the previous year. North American revenue also fell 11% to $689 million, while international revenue dropped by 13% to $489 million. Within international markets, revenue in the Europe, Middle East, and Africa (EMEA) region was down 2%, remaining flat on a currency-neutral basis, whereas Asia-Pacific revenue decreased by 27%. Latin America saw a 10% decline, although it increased by 3% when adjusted for currency fluctuations.

The company’s direct-to-consumer revenue fell 15% to $386 million, driven primarily by a 27% drop in e-commerce sales due to ongoing efforts to minimize promotional activities. Gross margin for the quarter improved by 170 basis points year-over-year to 46.7%, bolstered by benefits associated with supply chain efficiencies, reduced discounts, and a favorable product mix.

Selling, general, and administrative (SG&A) expenses rose by 1% to $607 million, while adjusted SG&A expenses, which exclude certain costs, increased by 7% to $586 million. The company reported an operating loss of $72 million for the quarter, with an adjusted operating loss of $36 million. The diluted loss per share was $0.16, while the adjusted diluted loss per share came in at $0.08.

For the full fiscal year 2025, Under Armour recorded a revenue decline of 9% to $5.2 billion, slightly outperforming earlier expectations. North American revenue for the full year was down 11% to $3.1 billion, and international revenue fell 6% to $2.1 billion. The gross margin for the full year increased by 180 basis points to 47.9%, advised by reductions in freight and product costs.

SG&A expenses for the year escalated by 8% to $2.6 billion, while adjusted SG&A decreased by 2% to $2.3 billion when excluding specific charges. The company recognized an operating loss of $185 million, but the adjusted operating income reached $198 million. The diluted loss per share for the full year was $0.47, while the adjusted diluted earnings per share were $0.31.

For the first quarter of fiscal 2026, Under Armour anticipates a revenue decline of 4% to 5%. Gross margin is expected to expand by 40 to 60 basis points. Adjusted operating income is anticipated to be between $20 million and $30 million, while the adjusted diluted earnings per share are forecasted to be in the range of $0.01 to $0.03.

The company’s cash balance at the end of the quarter was $501 million, with no amounts outstanding on its $1.1 billion revolving credit facility. Under Armour repurchased $25 million worth of its Class C stock during the fourth quarter, totaling $90 million of Class C shares repurchased during the fiscal year under an existing buyback program.