Under Armour Inc
NYSE:UAA
Under Armour Inc
Under Armour Inc. emerged as a disruptive force in the athletic apparel industry, challenging established titans by innovating from the ground up. Founded in 1996 by former University of Maryland football player Kevin Plank, the company began with a simple yet revolutionary idea: to create a moisture-wicking shirt that would keep athletes dry and comfortable. This initial product carved out a niche in the sports market, propelling Under Armour into the spotlight. The company quickly expanded its product line to include footwear, accessories, and a variety of athletic performance apparel, capitalizing on a growing global trend toward health and wellness. Under Armour's ability to blend performance technology with stylistic appeal allowed it to attract a diverse clientele, ranging from professional athletes to fitness enthusiasts.
Under Armour operates primarily through wholesale and direct-to-consumer channels. In its wholesale business, Under Armour sells its products to retail outlets, department stores, and specialty shops around the world, generating a significant portion of its revenue. Meanwhile, its direct-to-consumer segment, which includes e-commerce and owned retail stores, has seen substantial growth, as it aligns with changing consumer preferences toward online shopping and personalized experiences. Under Armour also earns money by licensing its brand to third parties for accessories and other merchandise. By consistently innovating and adapting its marketing strategies - including partnerships with high-profile athletes and celebrity endorsements - Under Armour sustains its competitive edge, reinforcing its brand's image as synonymous with performance and innovation.
Under Armour Inc. emerged as a disruptive force in the athletic apparel industry, challenging established titans by innovating from the ground up. Founded in 1996 by former University of Maryland football player Kevin Plank, the company began with a simple yet revolutionary idea: to create a moisture-wicking shirt that would keep athletes dry and comfortable. This initial product carved out a niche in the sports market, propelling Under Armour into the spotlight. The company quickly expanded its product line to include footwear, accessories, and a variety of athletic performance apparel, capitalizing on a growing global trend toward health and wellness. Under Armour's ability to blend performance technology with stylistic appeal allowed it to attract a diverse clientele, ranging from professional athletes to fitness enthusiasts.
Under Armour operates primarily through wholesale and direct-to-consumer channels. In its wholesale business, Under Armour sells its products to retail outlets, department stores, and specialty shops around the world, generating a significant portion of its revenue. Meanwhile, its direct-to-consumer segment, which includes e-commerce and owned retail stores, has seen substantial growth, as it aligns with changing consumer preferences toward online shopping and personalized experiences. Under Armour also earns money by licensing its brand to third parties for accessories and other merchandise. By consistently innovating and adapting its marketing strategies - including partnerships with high-profile athletes and celebrity endorsements - Under Armour sustains its competitive edge, reinforcing its brand's image as synonymous with performance and innovation.
Revenue: Under Armour reported Q3 revenue of $1.3 billion, down 5%, but slightly better than expectations due to some wholesale delivery timing shifts.
Operating Income: Adjusted operating income for Q3 was $26 million, exceeding guidance, despite a reported operating loss due to nonrecurring charges.
EPS: Adjusted diluted EPS was $0.09, with a reported loss per share of $1.01 due to litigation, restructuring, and a large noncash tax charge.
Guidance Raised: Management raised full-year adjusted operating income and narrowed its expected revenue decline to about 4% (better than previous -4% to -5%).
Margins: Gross margin fell 310 bps to 44.4%, in line with guidance, mainly hurt by higher tariffs and promotions.
Turnaround Progress: Management states the most disruptive phase of the company’s reset is behind them, with improved execution, simpler operations, and stabilizing revenue volatility.
Footwear & Product Focus: Footwear sales remain weak (down 14% YTD), but the company is simplifying assortments, prioritizing premium segments, and seeing positive early signs from new launches.
Regional Trends: North America is showing signs of stabilization, EMEA continues to grow (+9% guidance), and APAC is expected to stabilize over the next year.
Leadership Changes: Several senior leadership moves announced to drive execution and product focus. CFO Dave Bergman will step down, with Reza joining as the new CFO.
