Under Armour Reports 4.2% Revenue Decline to $1.134 Billion in Q2 2025

Under Armour, Inc. reported a decrease in net revenues for the three months ended June 30, 2025, totaling $1.134 billion, down 4.2% from $1.184 billion in the same period last year. The decline was attributed to a 4.6% drop in wholesale revenue and a 3.5% decrease in direct-to-consumer sales. The company experienced varied performance across its product categories, with apparel revenue decreasing by 1.5%, footwear down 14.3%, and accessories up 8.1%. The North American market saw a 5.5% revenue decline, while EMEA reported a 9.6% increase, contrasting with decreases in Asia-Pacific and Latin America of 10.1% and 15.3%, respectively.

Despite the revenue decline, Under Armour's gross profit margin improved to 48.2%, up 70 basis points from the previous year, primarily due to favorable product mix and pricing benefits. Selling, general, and administrative expenses significantly decreased by 36.7% to $530.3 million, largely due to reduced litigation reserves and lower marketing costs. The company recorded a modest operating income of $3.3 million, a substantial recovery from a loss of $299.7 million in the prior year, reflecting improved operational efficiencies and cost management.

In terms of strategic developments, Under Armour is undergoing a restructuring plan aimed at enhancing financial and operational efficiencies, with expected pre-tax charges between $140 million and $160 million. The company has already incurred $12.8 million in restructuring charges during the quarter. Additionally, Under Armour issued $400 million in senior unsecured notes due 2030, which will be used to refinance existing debt, further strengthening its capital structure.

Operationally, Under Armour's cash and cash equivalents increased to approximately $911 million as of June 30, 2025, bolstered by cash flows from financing activities. The company reported net cash provided by operating activities of $48.9 million, a decrease from $153 million in the prior year, primarily due to changes in working capital. The company continues to focus on improving inventory management and enhancing its direct-to-consumer sales channel as part of its long-term growth strategy.

Looking ahead, Under Armour anticipates ongoing challenges in the market, particularly in North America and Asia-Pacific, due to lower consumer demand. The company is actively monitoring macroeconomic factors, including inflation and global trade policies, which may impact its profitability. Despite these challenges, Under Armour remains committed to executing its strategic initiatives and improving its operational efficiencies to drive future growth.