What can we expect from UA's Q4 2025 earnings?

Under Armour's Q4 2025 earnings are expected to show a decline in revenue and profitability compared to the previous year, but with signs of improvement in international markets and a focus on restructuring and brand revitalization.

1. Revenue and Profitability: The estimated EPS for Q4 2025 is -$0.09, indicating a potential loss for the period. The estimated revenue is $1.16 billion, reflecting a decrease from the previous year's levels. This suggests that while the company is expected to report sales, the profitability metrics are likely to be challenging due to various restructuring and transformation costs.

2. International Performance: Under Armour has seen some positive movements in its international markets. Revenue in EMEA is expected to increase by 5% (or 3% currency neutral), while Latin America is expected to see a 16% decrease (or 9% currency neutral). The Asia-Pacific region has experienced a 5% decrease (or 6% currency neutral). This mixed trend in international markets suggests that while some regions are showing strength, others are facing significant headwinds.
3. Strategic Initiatives: The company has been actively pursuing a strategy to reconstitute its brand and improve its marketplace discipline. This includes focusing on strengthening the Under Armour brand, updating its product strategy, and enhancing its marketing initiatives. These efforts are expected to have a positive impact on the brand's long-term prospects but may initially result in short-term disruptions.
4. Financial Outlook: Under Armour has been proactive in addressing its financial health by announcing restructuring plans and cost-saving measures. The company has recognized significant charges related to these initiatives, which are expected to continue into the future. Despite these charges, the company is focusing on improving gross margins, which could lead to better profitability in the longer term.
5. Market Conditions: The broader athletic apparel market is likely to be competitive, with Under Armour facing challenges from increased competition and internal hurdles such as leadership changes. These factors are expected to impact the company's performance in the near term.

In conclusion, while Under Armour's Q4 2025 earnings are expected to reflect ongoing challenges, the company's strategic initiatives and focus on international markets provide some optimism for the future. Investors should monitor the company's progress in executing its turnaround plan and managing its restructuring efforts closely.