Under Armour revenues decline 10 percent in the first quarter

First quarter revenue at Under Armour was down 10 percent at reported and currency neutral basis to 1.2 billion dollars.

Gross margin for the quarter increased 110 basis points to 47.5 percent, operating loss was 300 million dollars and adjusted operating income was 8 million dollars.

First quarter net loss was 305 million dollars, adjusted net income was 4 million dollars, diluted loss per share was 70 cents and adjusted diluted earnings per share were 1 cent.

“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” said Under Armour president and CEO Kevin Plank.

Under Armour’s Q1 revenues down in North America and internationally

The company’s North America revenue decreased 14 percent to 709 million dollars and international revenue decreased 2 percent to 473 million dollars . In the international business, revenue in EMEA was flat, down 10 percent or 7 percent currency neutral in Asia-Pacific and up 16 percent or 12 percent currency neutral in Latin America.

Wholesale revenue for the quarter decreased 8 percent to 681 million dollars and direct-to-consumer revenue was down 12 percent to 480 million dollars. The company’s owned and operated store revenue declined 3 percent and ecommerce revenue decreased 25 percent, representing 34 percent of the total direct-to-consumer business for the quarter.

Apparel revenue decreased 8 percent to 758 million dollars, footwear revenue was down 15 percent to 310 million dollars and accessories revenue was down 5 percent to 93 million dollars.

Under Armour updates fiscal 2025 outlook

For the year ahead, Under Armour said revenue is expected to be down at a low double-digit percentage rate. This includes an expected 14 to 16 percent decline in North America and a low-single-digit percent decline in its international business, including flat results in EMEA offset by a high-single-digit decline in its Asia-Pacific business.

Gross margin for the year is expected to be up 75 to 100 basis points and operating loss is expected to be 194 to 214 million dollars, while adjusted operating income is expected to be 140 to 160 million dollars.

The company added that diluted loss per share is expected to be between 53 cents and 56 cents and adjusted diluted earnings per share are expected to be between 19 cents and 22 cents.