Under Armour Inc - Ordinary Shares (UA) 8 Aug 24 2025 Q1 Earnings call transcript

Under Armour's first quarter earnings call for fiscal 2025 highlighted the company's strategic efforts to reposition itself as a premium sports brand and to elevate its product offerings. Kevin Plank, Under Armour's CEO, emphasized the company's new focus on authenticity, innovation, and passion, positioning Under Armour as a sports house that stands out from the competition.

During the call, Plank discussed the company's Protect This House strategy, which includes building better products and storytelling, optimizing the business to clean up unnecessary complexity, and elevating consumer experiences. This strategy is designed to create a more premium positioning for Under Armour in the market while maintaining its accessibility to a wider audience.

One of the key initiatives mentioned during the call was the appointment of Eric Liedtke as Under Armour's EVP of Brand Strategy. Liedtke's extensive background in brand strategy and marketing, particularly at Adidas, is expected to significantly boost Under Armour's marketing efforts and product innovation. His role will oversee brand marketing, corporate strategy, consumer insights, sports marketing, creative, and loyalty functions, signaling a more focused and strategic approach to brand building.

Under Armour's financial performance for the first quarter was mixed, with revenue down 10% to $1.2 billion, driven by a 14% decline in North America due to softer full-price wholesale demand and lower sales to the off-price channel. The company's DTC business also faced challenges, with a 12% decline in revenue due to a reduction in promotional activities. However, Under Armour's gross margin increased by 110 basis points to 47.5%, driven by pricing benefits and supply chain efficiencies.

Looking ahead, Under Armour expects full-year revenue to decline at a low double-digit percentage rate, with a focus on improving its North American performance and optimizing its business for more premium positioning. The company also plans to invest in marketing and product innovation, with a particular focus on sportswear and high-performance styles.

Overall, Under Armour's first quarter earnings call showcased a company in transition, with a clear focus on premium positioning and strategic brand building. The appointment of Eric Liedtke and the implementation of the Protect This House strategy are expected to drive significant improvements in Under Armour's product offerings and brand perception in the coming quarters. Despite the current challenges, Under Armour remains optimistic about its future prospects and is positioning itself for a stronger comeback in the sports apparel market.