What factors influenced UA's earnings in 2025?

Under Armour's (UA) earnings in 2025 were influenced by several key factors:

1. **Revenue Decline**: UA experienced a 6% decline in revenue, which fell to $1.4 billion. This decrease was primarily due to a 8% drop in North American revenue, a 5% decline in APAC revenue, and a 16% decline in Latin American revenue. However, the EMEA region saw a 5% increase in revenue.
2. **Gross Margin Improvement**: Despite the revenue decline, UA's gross margin improved by 240 basis points, reaching 47.5%. This improvement was driven by supply chain benefits and reduced discounting, which allowed UA to increase profitability.
3. **Increased SG&A Expenses**: Selling, General, and Administrative (SG&A) expenses rose by 6% to $638 million. This increase was primarily due to higher marketing expenses and incentive compensation. However, adjusted SG&A expenses were better, showing an increase of 5% to $606 million.
4. **Fiscal Outlook**: UA anticipated a fiscal year 2025 revenue decline of approximately 10%. However, the company expected an adjusted diluted EPS of $0.28 to $0.30.
5. **International Performance**: UA's international revenue decreased by 1% to $558 million. Specifically, the Asia-Pacific and Latin America regions faced downturns of 5% and 16%, respectively. In contrast, the EMEA region posted a 5% increase in revenue.
6. **Product Launches and Marketing**: UA's improved product offerings, particularly in athletic performance and sportswear, contributed positively to its earnings. The launch of new products like the Curry brand's Fox 1 shoe and the SlipSpeed Echo footwear generated positive buzz.
7. **Loyalty Program Growth**: UA's loyalty program saw significant growth, with 4 million new members added in North America. This led to higher repurchase rates and revenue per consumer.
8. **Inventory and Cash Position**: UA's inventory remained flat at $1.1 billion compared to the previous year. The company's cash balance was $727 million at the end of the third quarter.

In conclusion, while UA faced challenges in revenue decline and regional variations, it leveraged improved gross margins, strategic product launches, and effective marketing to influence its earnings positively. The company's focus on strengthening its brand and enhancing marketplace discipline, along with a shift to a category-led operating model, are driving its transformation in the competitive sportswear industry.