American sportswear brand Under Armour has reported a 9% decrease in revenue for fiscal year 2025 (FY25), totalling $5.16bn, down from the $5.70bn recorded in the prior year.
The decline was consistent across all markets, with North American revenue dropping by 11% and international revenue by 6%.
Go deeper with GlobalData
Retail outlets owned by the company experienced a 2% revenue decrease while e-commerce faced a significant 23% reduction due to strategic cuts in promotional activities.
Despite the revenue downturn, Under Armour’s gross margin for the fiscal year saw an uptick of 180 basis points, reaching 47.9%. This improvement was largely attributed to supply chain efficiencies that resulted in lower freight and product costs, as well as a decrease in direct-to-consumer (DTC) discounting.
Under Armour recorded an operating loss of $185.22m for the year, a stark contrast to the operating income of $229.75m reported in the previous fiscal period.
For fiscal year 2025, the company posted a net loss of $201.27m against a net income of $232.04m from the prior year. This translates to diluted loss per share stood at $0.47 compared to earnings per share of $0.52 in fiscal 2024.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn the fourth quarter (Q4) of FY25 alone, revenues fell by 11%, with North American and international revenues decreasing by 11% and 13%, respectively.
Gross margin during this period improved by 170 basis points to 46.7%, again benefiting from supply chain advantages and reduced discounting.
Operating loss for the quarter was reported at $72.08m but adjusted to a loss of $36m after considering various charges.
Net loss for Q4 reached $67.46m, resulting in a diluted loss per share of $0.16.
By the end of Q4 FY25, Under Armour had accumulated $58m in restructuring and impairment charges along with $31m in other transformational expenses.
The company’s ongoing restructuring plan is expected to cost between $140m and $160m, including up to $90m in cash charges and up to $70m in noncash charges.
Under Armour president and CEO Kevin Plank said: “Our fourth-quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand.”
In the first quarter of fiscal 2026, Under Armour expects revenue to drop between 4-5% compared to Q1 FY25.
The company has issued guidance solely for the quarter amidst trade policy uncertainties and challenging macroeconomic conditions that may affect tariffs, demand, and costs.
Gross margin is forecasted to improve by 40-60 basis points over last year due to a more favourable product mix and lower product and freight costs alongside positive foreign exchange impacts.
Operating income is projected to be between $5m and $15m while diluted loss per share is expected to range from $0.00 to $0.02 for Q1 FY26.
Plank added: “As we look toward fiscal 2026 amid a complex macroeconomic backdrop, our sharpened execution, alignment, and focus – bolstered by the move to a category-led operating model – equip us to navigate ongoing volatility with resilience.
“I’m confident in the agility we’ve built over the past year, and we are raising our bar of excellence at Under Armour.”
