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- **North America Stabilization**: Q3 DTC e-commerce down 7%, but wholesale order book improving. Target: stabilize footwear in FY27, grow EMEA, stabilize APAC.
- **Footwear Recovery**: Exiting low-margin SKUs, focusing on $100+ sportswear (HB-LO, Sola) and training/running franchises. Assert 11 ASP up vs. Assert 10.
- **Apparel Strength**: Heat/ColdGear up double-digits, Icon Fleece and women's Meridian franchise gaining traction. Spring/Summer '26 collection features cohesive design language.
- **Financial Outlook**: FY26 revenue -4%, adjusted EPS $0.10-$0.11. FY27 target: stabilize footwear, grow EMEA, stabilize APAC.
- **Leadership Changes**: Kara Trent (CMO), Adam Peake (Americas President), Eric Liedtke (CMO), Yassine Saidi (external adviser). New structure enables faster decision-making and SKU productivity.
- **Risk Points**: U.S. tariffs driving 200bps margin pressure, promotional environment in North America and APAC.


**【CEO Summary Section】**
- **Turnaround Progress**: CEO Kevin Plank emphasized stabilization in North America, driven by product segmentation (good, better, best) and tighter SKU management. Footwear sales down 14% YTD but improving with SKU rationalization and focus on high-margin franchises like Velociti Run and sportswear styles ($100+ price points).
- **Apparel Strength**: Base layer (Heat/ColdGear) up double-digits, with new styles driving higher ASPs. Icon Fleece and women's Meridian franchise gaining traction. Spring/Summer '26 collection features cohesive design language.
- **Footwear Reset**: Exiting low-productivity SKUs, concentrating on training, running, and sportswear. Assert 11 ASP up vs. Assert 10; HB-LO ($100 basketball shoe) and Sola ($120) show early success. Target: stabilize footwear in FY27.
- **Regional Performance**: EMEA up 6% (currency-neutral +2%), APAC down 5% (sequential improvement), Latin America +20% (currency-neutral +13%). North America DTC e-commerce down 7%, but factory house performance improving.
- **Leadership Changes**: Kara Trent (CMO), Adam Peake (Americas President), Eric Liedtke (CMO), Yassine Saidi (external adviser). New structure enables faster decision-making and SKU productivity.

**【CFO Financial Commentary】**
- **Q3 Results**: Revenue $1.3B (-5% YoY), GAAP loss $1.01, adjusted EPS $0.09. Gross margin -310bps YoY to 44.4% due to tariffs, promotions, and mix. SG&A down 7% to $563M (excl. litigation reserve).
- **Restructuring**: $224M in charges under FY25 plan, with $35M savings in FY25 and $55M expected in FY26. Full year charges capped at $255M.
- **FY26 Outlook**: Revenue -4% (vs. prior -4% to -5% range). Gross margin -190bps YoY. Adjusted OI $110M (high end of prior $95M-$110M range). Adjusted EPS $0.10-$0.11.
- **Liquidity**: $465M cash, $600M restricted investments (pledged for debt repayment). No revolver borrowings.

**【Q&A Highlights】**
- **North America Stabilization**: Fall order book improving, wholesale partners gaining confidence in product. Kara Trent's leadership credited with turning around DTC business. FY27 target: stabilize footwear, grow EMEA, stabilize APAC.
- **Footwear Strategy**: $1B+ category with potential for growth. Focusing on $100+ sportswear (HB-LO, Sola) and training/running franchises. Eliminating SKUs with <10% margin contribution.
- **APAC Recovery**: New leadership driving full-price sales, inventory management. Sequential improvement in Q3, but challenges remain in promotional environment.
- **Product Segmentation**: Apparel SKUs reduced by 25%, targeting 30% commonality across regions. Footwear ASPs moving into $100+ range with intentional price-to-value storytelling.
- **Litigation Reserve**: $99M expense for insurance dispute, non-cash tax valuation allowance ($247M) impacting EPS but no cash impact.


Under Armour, Inc. (UAA) Q3 2026 Earnings Call Transcript

- **Leadership Change**: CFO transition signals new chapter, with Reza Taleghani set to drive financial transformation.
- **Product Innovation**: NEOLAST fiber and premium footwear launches (e.g., $160 Velociti) highlight UA's commitment to sustainable, high-performance products.
- **Regional Momentum**: EMEA +12% Q2 growth, APAC testing digital retail, North America DTC conversion rates improving despite wholesale softness.
- **Financial Outlook**: FY26 revenue decline narrowing to -4% to -5%, with FY27 stabilization in North America and EMEA growth.
- **Key Risks**: U.S. tariffs squeezing gross margin (-250bps YoY), footwear sales down 16% as UA recalibrates portfolio.


**【CEO Summary Section】**
- **Leadership Transition**: CFO David Bergman retiring after 21 years, replaced by Reza Taleghani in Feb 2026. CEO Kevin Plank emphasized Dave's legacy and Reza's global finance expertise.
- **Product Strategy**: Streamlined SKUs by 25%, refocused on innovation (e.g., NEOLAST fiber, $160 Velociti distance shoe). Fall/Winter '25 collections (HeatGear, Unstoppable) driving demand, footwear sales boosted by Sharon Lokedi's NYC Marathon podium.
- **Regional Progress**: EMEA +12% Q2, APAC rebuilding with disciplined inventory management, North America wholesale softness offset by DTC conversion rate improvements.
- **Storytelling Focus**: 'We Are Football' campaign boosted 18-34yo awareness to 80%, HeatGear baselayer sales +double digits. APAC testing new digital retail store concept.

**【CFO Financial Commentary】**
- **Q2 Results**: Revenue $1.3B (-5% YoY), GAAP net loss $0.04, Non-GAAP EPS $0.04. North America -8%, EMEA +12%, APAC -14%. Footwear -16% due to portfolio recalibration.
- **Gross Margin**: 47.3% (-250bps YoY), driven by U.S. tariffs (+275bps) and mix shifts. Q3 gross margin expected -310-330bps.
- **Cost Management**: SG&A +12% YoY, but adjusted SG&A down slightly. Restructuring savings $35M in FY25, targeting $45M in FY26.
- **Outlook**: FY26 revenue -4% to -5%, FY27 stabilization in North America. Q3 revenue -6% to -7%, Q4 decline narrowing.

**【Q&A Highlights】**
- **North America Stabilization**: CEO cites product innovation (Assert 11, NEOLAST), partner replenishment orders, and brand heat from 'We Are Football' campaign. CFO expects FY27 stabilization with EMEA growth and APAC recovery.
- **APAC Recovery**: Testing new store concept, reducing inventory, and simplifying assortments. CFO notes Q4 APAC DTC modest decline vs. tough FY25 comp.
- **Footwear Challenges**: Deliberate portfolio recalibration, focusing on franchises (Velociti, Magnetico). CEO confident in long-term footwear potential through performance storytelling.
- **Pricing Strategy**: Selective price increases to offset tariffs, strategic SKU profitability analysis. NEOLAST-driven products (e.g., $160 Velociti) justify higher ASPs.


Under Armour, Inc. (UAA) Q2 2026 Earnings Call Transcript

- **Strategic Product Focus**: 25% SKU reduction and 30% material library cut to drive premiumization, with key items like $140 No Weigh Backpack. 
- **Revenue Challenges**: Q1 2026 revenue down 4% YoY, Q2 guided to -6% to -7% YoY, with EMEA growth offsetting North America and APAC declines. 
- **Tariff Headwinds**: $100M tariff-related costs in FY26, 200bps gross margin impact, with mitigation efforts (pricing, cost-sharing) to take effect in FY27+. 
- **Brand Momentum**: Early signs of recovery in North America (e-commerce NPS +18pts YoY), EMEA leading with +10% YoY growth, and APAC reset underway. 
- **Financial Discipline**: SG&A down 6% YoY, $35M restructuring savings, and FY26 operating income expected to be ~50% of FY25 levels. 


**【CEO Summary Section】**
- **Strategic Shifts**: Focused on brand-first decisions, simplifying product lines (25% SKU reduction, 30% material library cut), and premiumizing key products (e.g., $45 StealthForm Hat, $140 No Weigh Backpack). 
- **Product Innovation**: Launching pinnacle products like Velociti Elite 3 running shoes and Magnetico football boots, with 80/20 focus on high-margin items. 
- **Regional Performance**: EMEA up 10% YoY, North America stabilizing with improved e-commerce NPS (70%), and APAC undergoing reset with new leadership. 
- **Tariff Mitigation**: Projected $100M tariff-related costs, offsetting through price adjustments and cost-sharing with suppliers. 
- **Brand Momentum**: Early signs of recovery in North America (Spotlight Suede sell-through, 18-34-year-old brand awareness growth), and EMEA leading with football and sportswear. 

**【CFO Financial Commentary】**
- **Q1 2026 Results**: Revenue $1.1B (-4% YoY), EMEA +10% YoY, APAC -10% YoY. Gross margin +70bps to 48.2% (FX, pricing, mix benefits). 
- **Cost Management**: SG&A down 6% YoY ($522M), $35M savings from restructuring, targeting $45M more in FY26. 
- **Outlook**: Q2 revenue -6% to -7% YoY (NA low double-digit decline), adjusted operating income $30M-$40M. FY26 operating income expected to be ~50% of FY26 levels. 
- **Tariff Impact**: 200bps gross margin headwind in FY26, with ~2/3 from new tariffs, offsetting via pricing and sourcing (benefits to materialize in FY27+). 

**【Q&A Highlights】**
- **Tariff Demand Impact**: Retailers cautious on inventory, but UA maintaining discipline on promotions. Footwear underperforming (Q1 -14% YoY) due to product transition. 
- **Brand Health Signals**: NPS score +18pts YoY, Spotlight Suede TikTok buzz, and 7M views on UA Next Flight School content. 
- **Future Execution**: Q2 toughest quarter, but FY26+ growth driven by new product pipeline (e.g., Spring/Summer '26 launches). 
- **Tax Challenges**: Higher effective tax rate due to regional profitability mix, limiting near-term EPS growth. 
- **Order Book**: Holiday '25 and Spring '26 order books cautious, but retailers testing UA's premiumization strategy. 


Under Armour, Inc. (UAA) Q1 2026 Earnings Call Transcript

- **Revenue Recovery in NA**: 15% YoY growth in North America, driven by premium DTC strategy and reduced promotions. 
- **Gross Margin Expansion**: +170bps in Q4 to 46.7%, with FY25 margin up 180bps to 47.9%. H2 FY26 targeting further expansion. 
- **Premium Product Launches**: UA Halo collection and NEOLAST material showcase innovation and sustainability focus. 
- **Tariff Mitigation**: Diversifying sourcing (30% Vietnam, 20% Jordan, 15% Indonesia) and exploring price adjustments to offset $100M+ risk. 
- **Cost Efficiency**: $75M+ annualized SG&A savings from restructuring, with Q1 FY26 adj. operating income $20M-$30M. 
- **EMEA Growth**: Q1 FY26 EMEA up high single-digits, APAC reset underway with early signs of stabilization. 


**【CEO Summary Section】**
- **North American Market Recovery**: Revenue grew 15% YoY, driven by reduced promotions in DTC channels and a focus on premium products. 
- **AI Investment and Margin Expansion**: Gross margin expected to improve in H2 due to strategic product refinement and pricing power. 
- **Product Innovation**: Launch of UA Halo collection and NEOLAST material, emphasizing performance and sustainability. 
- **Go-to-Market Strategy**: Comprehensive approach combining innovative products, trained sales teams, brand-right retail execution, and social media support. 
- **Category Management**: Shift to a category-led model with clear ownership, improving execution and efficiency across training, running, and sportswear. 
- **Global Expansion**: EMEA leads with double-digit growth, APAC reset underway, and North America DTC transformation progressing with full-price sales mix up 10+ points. 

**【CFO Financial Commentary】**
- **Q4 FY25 Results**: Revenue $1.2B (-11% YoY), GAAP net loss $0.16, adj. EPS $0.08. Gross margin +170bps to 46.7% due to lower discounts, supply chain savings, and product mix. 
- **FY25 Full-Year**: Revenue $5.2B (-9% YoY), adj. EPS $0.31 (vs. $0.28-$0.30 guidance). Gross margin +180bps to 47.9%. 
- **FY26 Outlook**: Q1 revenue -4% to -5%, adj. operating income $20M-$30M. Gross margin expansion 40-60bps, SG&A leverage from restructuring savings ($75M+ annualized). 
- **Tariff Impact**: 30% of volume sourced from Vietnam, 20% Jordan, 15% Indonesia. Exploring cost-sharing, diversification, and price adjustments to mitigate $100M+ potential headwind. 

**【Q&A Highlights】**
- **North America Reset**: DTC e-commerce full-price mix up double-digits, factory stores reducing sales events. Backpack launch tests $140 price point, signaling premiumization. 
- **EMEA Momentum**: High single-digit Q1 growth driven by FX tailwinds and sportswear strength. 
- **Inventory Management**: FY25 ended flat YoY, Q1 FY26 targeting tight control amid tariff uncertainty. 
- **SG&A Efficiency**: $75M+ annualized savings from restructuring, focusing on marketing ROI and cost reduction. 
- **Product Mix**: Shifting to 25% 'good', 50% 'better', 25% 'best' with Halo trainers and Velociti Elite footwear as flagships. 


Under Armour, Inc. (UAA) Q4 2025 Earnings Call Transcript

- **Q3 Beat with Margin Strength**: 240 bps gross margin expansion to 47.5% drove $60M adjusted operating income, vs. $14M GAAP.
- **North America Restructuring**: DTC eCommerce down 20% but full-price mix improving; FY25 North America revenue down 12-13% vs. prior 14-16%.
- **Product Innovation Payoff**: Fox 1 shoe, Echo footwear, and $120 hoodie show premiumization success; FY25 gross margin up 160 bps.
- **Category-Led Model**: Eric Liedtke’s brand leadership and team sports focus driving strategic alignment.
- **FY25 EPS Guidance Raised**: $0.28-0.30 vs. prior $0.25-0.27, reflecting margin expansion and cost control.

**【CEO Summary Section】**
- Fiscal Q3 revenue declined 6% to $1.4 billion, outperforming expectations due to strong gross margin expansion (+240 bps to 47.5%) and disciplined promotional activity in North America.
- North America DTC revenue declined 9% as eCommerce sales fell 20% due to reduced promotions, but full-price sales mix improved.
- Highlighted product innovations include the Fox 1 signature shoe for De’Aaron Fox and the Echo footwear line, with premium apparel like the $120 UA Icon Heavyweight Hoodie showing strong sell-through.
- Transitioning to a category-led operating model with Eric Liedtke as Brand President, focusing on team sports, sportswear, and outdoor verticals.
- FY25 full-year outlook raised: revenue down ~10% vs. prior low-double-digit decline, gross margin up 160 bps vs. 125-150 bps prior guidance.

**【CFO Financial Commentary】**
- Q3 GAAP operating income $14M, adjusted $60M, driven by $28M impairment charge and $18M restructuring expenses.
- SG&A expenses rose 6% to $638M due to marketing investments, partially offset by cost management.
- Inventory flat at $1.1B, cash balance $727M, with $25M share buybacks.
- FY25 adjusted EPS guidance raised to $0.28-0.30 vs. prior $0.25-0.27.

**【Q&A Key Highlights】**
- **North America Reset**: 12-13% FY25 revenue decline expected, with focus on premiumization and reducing off-price channel exposure.
- **APAC Challenges**: High promotional activity and macroeconomic factors causing low-teens revenue decline, but brand perception remains strong.
- **Marketing Strategy**: $500M annual budget reweighted to culturally relevant content (e.g., Notre Dame National Championship activation) and direct-to-consumer storytelling.
- **Footwear Growth**: SlipSpeed Echo launch at All-Star Weekend and Curry 12 performance in Asia highlight footwear category potential.
- **FY26 Outlook**: Brand inflection expected, with gross margin expansion and disciplined marketplace management driving long-term growth.

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