Under Armour Reports Decline in Revenue and Net Loss for Third Quarter 2025

Under Armour, Inc. reported a decline in financial performance for the three and six months ended September 30, 2025, as detailed in its latest 10-Q filing. The company generated net revenues of $1.33 billion for the third quarter, a decrease of 4.7% compared to $1.40 billion in the same period last year. For the first half of the fiscal year, revenues totaled $2.47 billion, down 4.5% from $2.58 billion in the prior year. The decline was attributed to lower consumer demand, particularly in North America and Asia-Pacific, where net revenues fell by 8.3% and 13.7%, respectively. In contrast, the EMEA region saw a revenue increase of 12.2%.

The company's gross profit also decreased, falling to $630.6 million in the third quarter, down from $696.1 million a year earlier, resulting in a gross margin of 47.3%, a decline of 250 basis points. This reduction was primarily driven by increased supply chain costs, including tariffs, and unfavorable channel and regional mix. Selling, general, and administrative expenses rose by 11.9% to $581.6 million, reflecting higher marketing costs and other operational expenses. The company recorded a net loss of $18.8 million for the quarter, compared to a net income of $170.4 million in the same period last year.

In terms of strategic developments, Under Armour is undergoing a significant restructuring plan aimed at enhancing operational efficiency, with expected pre-tax charges of up to $160 million. The plan includes cash-related charges for employee severance and various transformational initiatives. During the quarter, the company incurred restructuring charges of $31.9 million, a substantial increase from $3.2 million in the prior year. The restructuring is anticipated to be largely completed by the end of fiscal 2026.

Operationally, Under Armour's total assets increased to $4.90 billion as of September 30, 2025, up from $4.30 billion at the end of the previous fiscal year. The company reported a total employee headcount of approximately 14,000, reflecting its ongoing commitment to maintaining a robust workforce despite the restructuring efforts. The company also repurchased $25 million of its Class C Common Stock during the quarter, part of a broader $500 million share repurchase program authorized in May 2024.

Looking ahead, Under Armour anticipates continued challenges due to macroeconomic factors, including inflation and changes in global trade policies. The company expects these conditions to negatively impact its profitability and has indicated a potential $100 million increase in costs due to tariffs in fiscal 2026. Despite these challenges, Under Armour remains focused on long-term growth through strategic initiatives aimed at enhancing brand engagement and expanding its market presence.