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Under Armour C 2025 Q4 Earnings Misses Targets as Net Income Drops 1127%
Generated by AI AgentAinvest Earnings Report Digest
Tuesday, May 13, 2025 9:04 pm ET2min read
Under Armour C reported its fiscal 2025 Q4 earnings on May 13th, 2025. The company faced substantial challenges, missing analysts' expectations with a significant decline in both revenue and earnings. provided a cautious outlook for the first quarter of fiscal 2026, forecasting a revenue decrease of 4 to 5 percent compared to the prior year. The company anticipates a diluted loss per share ranging from $0.00 to $0.02, with adjusted earnings per share expected between $0.01 and $0.03.
Revenue
In the fourth quarter of fiscal 2025, Under Armour C's total revenue fell 11.4% to $1.18 billion, compared to $1.33 billion in the same quarter last year. Apparel sales led the decline, generating $780.37 million, while footwear contributed $281.85 million. Accessories saw a slight increase, reaching $91.50 million. Net sales amounted to $1.15 billion, complemented by licensing revenues of $24.22 million and corporate other revenue of $2.65 million, culminating in total net revenues of $1.18 billion.
Earnings/Net Income
Under Armour C reported a reversal in earnings, with a loss of $0.16 per share in 2025 Q4, contrasting with a profit of $0.02 per share in the previous year, signaling a 900% negative change. The net loss for the quarter was $67.46 million, marking a 1127.1% decline from the net income of $6.57 million in 2024 Q4. This indicates weak earnings performance for the quarter.
Price Action
The stock price of has edged down 1.32% during the latest trading day, has jumped 9.51% during the most recent full trading week, and has surged 20.28% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Under Armour stock when it surpasses revenue expectations and holding for 30 days has proved ineffective, resulting in a significant loss of 19.86%. This approach has been characterized by a negative Sharpe Ratio of -0.09 and a maximum drawdown of 77.56%. Moreover, the strategy's compound annual growth rate (CAGR) was -4.36%, indicating a decline in value throughout the holding period. These results underscore the strategy's failure to generate positive returns and highlight the considerable risk it posed to investors.
CEO Commentary
"One year into our strategic reset, we're laying the groundwork for a more focused Under Armour," said Kevin Plank, President and CEO of Under Armour. He emphasized the company's efforts to elevate products and storytelling, tighten distribution, and refine the operating model to reignite brand relevance and position the business for sustainable, profitable growth. Plank noted that the fourth quarter performance exceeded the expectations set a year ago, demonstrating traction in the brand's repositioning efforts despite a challenging environment, with revenue down 11% to $1.2 billion.
Guidance
For the first quarter of fiscal 2026, Under Armour expects revenue to decrease by 4 to 5 percent compared to the prior year, with projected diluted loss per share ranging from $0.00 to $0.02, and adjusted diluted earnings per share anticipated between $0.01 and $0.03. The company forecasts an operating income of $5 million to $15 million, with adjusted operating income expected to be between $20 million and $30 million, reflecting ongoing efforts to navigate a complex macroeconomic backdrop.
Additional News
Under Armour remains active in its share repurchase program, having bought back $25 million of its Class C common stock in the fourth quarter, retiring 4.1 million shares. As of March 31, 2025, the company has repurchased a total of 12.8 million shares for $90 million as part of a three-year, $500 million initiative approved by the Board of Directors in May 2024. This buyback program is part of Under Armour’s strategy to enhance shareholder value and optimize its capital structure amid ongoing challenges in the market. Additionally, the company is navigating its fiscal 2025 restructuring plan aimed at improving financial and operational efficiencies, with anticipated costs ranging from $140 million to $160 million.
Revenue
In the fourth quarter of fiscal 2025, Under Armour C's total revenue fell 11.4% to $1.18 billion, compared to $1.33 billion in the same quarter last year. Apparel sales led the decline, generating $780.37 million, while footwear contributed $281.85 million. Accessories saw a slight increase, reaching $91.50 million. Net sales amounted to $1.15 billion, complemented by licensing revenues of $24.22 million and corporate other revenue of $2.65 million, culminating in total net revenues of $1.18 billion.
Earnings/Net Income
Under Armour C reported a reversal in earnings, with a loss of $0.16 per share in 2025 Q4, contrasting with a profit of $0.02 per share in the previous year, signaling a 900% negative change. The net loss for the quarter was $67.46 million, marking a 1127.1% decline from the net income of $6.57 million in 2024 Q4. This indicates weak earnings performance for the quarter.
Price Action
The stock price of has edged down 1.32% during the latest trading day, has jumped 9.51% during the most recent full trading week, and has surged 20.28% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Under Armour stock when it surpasses revenue expectations and holding for 30 days has proved ineffective, resulting in a significant loss of 19.86%. This approach has been characterized by a negative Sharpe Ratio of -0.09 and a maximum drawdown of 77.56%. Moreover, the strategy's compound annual growth rate (CAGR) was -4.36%, indicating a decline in value throughout the holding period. These results underscore the strategy's failure to generate positive returns and highlight the considerable risk it posed to investors.
CEO Commentary
"One year into our strategic reset, we're laying the groundwork for a more focused Under Armour," said Kevin Plank, President and CEO of Under Armour. He emphasized the company's efforts to elevate products and storytelling, tighten distribution, and refine the operating model to reignite brand relevance and position the business for sustainable, profitable growth. Plank noted that the fourth quarter performance exceeded the expectations set a year ago, demonstrating traction in the brand's repositioning efforts despite a challenging environment, with revenue down 11% to $1.2 billion.
Guidance
For the first quarter of fiscal 2026, Under Armour expects revenue to decrease by 4 to 5 percent compared to the prior year, with projected diluted loss per share ranging from $0.00 to $0.02, and adjusted diluted earnings per share anticipated between $0.01 and $0.03. The company forecasts an operating income of $5 million to $15 million, with adjusted operating income expected to be between $20 million and $30 million, reflecting ongoing efforts to navigate a complex macroeconomic backdrop.
Additional News
Under Armour remains active in its share repurchase program, having bought back $25 million of its Class C common stock in the fourth quarter, retiring 4.1 million shares. As of March 31, 2025, the company has repurchased a total of 12.8 million shares for $90 million as part of a three-year, $500 million initiative approved by the Board of Directors in May 2024. This buyback program is part of Under Armour’s strategy to enhance shareholder value and optimize its capital structure amid ongoing challenges in the market. Additionally, the company is navigating its fiscal 2025 restructuring plan aimed at improving financial and operational efficiencies, with anticipated costs ranging from $140 million to $160 million.
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