Under Armour Inc C
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.73%.
Did UA Beat Earnings? Q4 2025 Results
Under Armour's fiscal fourth quarter told a tale of two metrics, with the Baltimore-based athleticwear brand matching Wall Street's loss estimate of $0.08 per share while falling short on the top line, posting $1.18 billion in revenue against a $1.21 billion consensus, a -2.79% miss. Revenue was flat year-over-year, masking the deliberate nature of the shortfall; CEO Kevin Plank's ongoing strategic reset continued to prioritize brand health over volume, with the company pulling back sharply on promotional activity and tightening distribution channels. The discipline showed up in gross margin, which expanded 170 basis points to 46.7% on lower freight costs and reduced discounting, offering investors a structural silver lining amid broad revenue declines across North America, international markets, and the eCommerce channel. The full fiscal year net loss of $201.27 million was heavily shaped by $266.00 million in litigation settlement charges. Looking ahead, tariff uncertainty prompted management to withhold full-year guidance, instead projecting Q1 fiscal 2026 revenue to decline 4-5% with adjusted EPS of $0.01 to $0.03.
- Gross margin expansion of 170 bps driven by supply chain benefits including lower product and freight costs
- Reduced direct-to-consumer discounting improving margin quality
- Favorable product mix and foreign exchange impacts on gross margin
- Planned eCommerce revenue reduction of 27% as promotional activities scaled back
- Accessories revenue grew 2% against overall revenue declines
“One year into our strategic reset, we're laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth.”
Under Armour CEO, on the earnings call
Forward Guidance & Outlook
Due to uncertainty surrounding evolving trade policies and the macroeconomic environment, Under Armour provided guidance only for Q1 fiscal 2026 (quarter ending June 30, 2025). Revenue is expected to decrease 4-5% year-over-year, with North America declining 4-5%, EMEA growing high single digits, and Asia-Pacific declining mid-teens. Gross margin is expected to increase 40-60 basis points driven by favorable product mix, lower product and freight costs, and positive FX, partially offset by unfavorable channel/regional mix and tariff impacts. GAAP operating income is anticipated at $5-$15 million; adjusted operating income is expected at $20-$30 million. GAAP diluted loss per share is expected at $0.00 to $0.02; adjusted diluted EPS is anticipated at $0.01 to $0.03.
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Figures from SEC filings and company reports. Not investment advice.