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Under Armour's Q4 2025: Navigating Contradictions in North American Strategy, Brand Activation, and E-Commerce
Generated by AI AgentEarnings Decrypt
Tuesday, May 20, 2025 2:16 pm ET1min read
North American reset strategy and timeline, influencer marketing and brand activation strategy, inventory management and product strategy, North American brand reset strategy, and e-commerce strategy and brand focus are the key contradictions discussed in Under Armour's latest 2025Q4 earnings call.
Revenue and Gross Margin Trends:
- reported revenue of $1.2 billion for Fiscal Q4 2025, down 11%, and full-year revenue of $5.2 billion, down 9%.
- Despite the decline, the gross margin increased by 170 basis points to 46.7%.
- The revenue drop was due to strategic efforts to limit promotional activities and reduce discounting, while the gross margin improvement resulted from better supply chain and pricing benefits.
Regional Performance Variability:
- North American revenue declined 11%, primarily due to a decrease in DTC business and wholesale full price sales.
- EMEA revenue decreased 2% but remained flat on a currency-neutral basis, with strong growth in the direct-to-consumer, distributor, and off-price businesses.
- The decline in North America was intentional to refocus on higher quality revenue, while EMEA's stable performance was supported by strong partnerships and category focus.
Inventory and Pricing Strategy:
- Inventory was down 1% to $946 million, aligning with expectations and reflecting disciplined inventory management.
- The company aims to sell more of its products at a higher full price, focusing on premium products and reducing SKUs.
- This approach is intended to enhance profitability and unlock growth opportunities by aligning products with consumer demand and market positioning.
Leadership and Cultural Transformation:
- Under Armour has made significant strategic hires and leadership changes, aiming to build a high-caliber team.
- This transformation is part of a broader effort to elevate the brand through stronger financial management and operational efficiency.
- The new leadership is focused on sharpening execution and boosting results through enhanced strategic direction.
Revenue and Gross Margin Trends:
- reported revenue of $1.2 billion for Fiscal Q4 2025, down 11%, and full-year revenue of $5.2 billion, down 9%.
- Despite the decline, the gross margin increased by 170 basis points to 46.7%.
- The revenue drop was due to strategic efforts to limit promotional activities and reduce discounting, while the gross margin improvement resulted from better supply chain and pricing benefits.
Regional Performance Variability:
- North American revenue declined 11%, primarily due to a decrease in DTC business and wholesale full price sales.
- EMEA revenue decreased 2% but remained flat on a currency-neutral basis, with strong growth in the direct-to-consumer, distributor, and off-price businesses.
- The decline in North America was intentional to refocus on higher quality revenue, while EMEA's stable performance was supported by strong partnerships and category focus.
Inventory and Pricing Strategy:
- Inventory was down 1% to $946 million, aligning with expectations and reflecting disciplined inventory management.
- The company aims to sell more of its products at a higher full price, focusing on premium products and reducing SKUs.
- This approach is intended to enhance profitability and unlock growth opportunities by aligning products with consumer demand and market positioning.
Leadership and Cultural Transformation:
- Under Armour has made significant strategic hires and leadership changes, aiming to build a high-caliber team.
- This transformation is part of a broader effort to elevate the brand through stronger financial management and operational efficiency.
- The new leadership is focused on sharpening execution and boosting results through enhanced strategic direction.
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