Core Viewpoint - Under Armour's stock has shown volatility, with significant movements following news releases, particularly related to the return of founder Kevin Plank and the company's financial updates [1][2]. Group 1: Leadership and Strategy - The return of Kevin Plank as founder is seen as a pivotal moment for Under Armour, potentially driving innovation and a clearer vision for the company [2]. - Historical data suggests that companies led by founders tend to perform better in terms of innovation and financial results, with founder CEOs showing 3.1 times better performance over a 15-year period [2]. Group 2: Financial Performance and Market Reaction - Under Armour announced higher FY25 restructuring charges of $140 to $160 million, which negatively impacted stock performance despite only a slight increase in operating loss expectations to $220 to $240 million [3]. - The adjusted EPS target was updated to $0.19 to $0.22, aligning with original estimates, indicating that the company is meeting prior expectations despite the restructuring news [3]. Group 3: Market Position and Valuation - Under Armour's stock trades at a significant discount compared to competitors like Lululemon and Nike, suggesting potential upside if the brand can regain its strength [4][6]. - The company has improved its gross margin to 47.5% by shifting towards premium pricing, which could enhance its valuation multiple [5]. Group 4: Future Outlook - The hiring of Eric Liedtke is expected to boost brand value, leveraging his experience in brand strategy and sustainable products [3]. - Investors are encouraged to view any stock weakness as a buying opportunity, with the potential for a turnaround under Plank's leadership to yield substantial returns [7].

You have to spend money to save money.Shares of Under Armour (UA -10.79%) slumped 9.6% on Tuesday as of 12:17 p.m. ET.The athletic apparel and shoe company has had a tough few years, as growth stalled out and profits have taken a hit, with operating profits swinging to losses in 2024 for the first time since the pandemic.But Under Armour would have actually been profitable this past quarter if not for large transformation and restructuring expenses taken, as CEO Kevin Plank attempts to reposition the busine ...

Core Viewpoint - Under Armour is undergoing a strategic repositioning to restore its premium brand status, which has led to a decline in sales volume and expected losses in the short term, but improvements in gross margins are noted [1][3][4]. Financial Performance - Under Armour's stock has decreased by 6% year-to-date, currently trading at around $8, while peer Nike has seen a 24% decline [1]. - The company's revenue for Q1 was down 10% year-over-year to $1.2 billion, with North American sales dropping 14% and Asia Pacific sales down 10% [1]. - Gross margins have decreased from approximately 50% post-COVID to 47.5% in Q1 2025, although this represents a year-over-year increase of 110 basis points [1]. - For fiscal year 2025, revenue is forecasted to decline by 10% year-over-year, with a projected revenue of $5.1 billion [2][3]. Market Comparison - Under Armour's stock has underperformed the S&P 500 over the past three years, with returns of 21% in 2021, -51% in 2022, and -6% in 2023, compared to the S&P's respective returns of 27%, -19%, and 24% [2]. - The company's stock price is currently valued at $8 per share based on a revenue per share forecast of $11.33 and a 0.7x price-to-sales multiple for fiscal year 2025 [2]. Strategic Initiatives - The company is focusing on reducing inventory, which has decreased by 15% to $1.1 billion, and cutting back on online discounts to improve profitability [1]. - Under Armour expects to incur an operating loss of $194 million to $214 million for the full year due to higher expenses and restructuring charges related to its repositioning plan [3]. Consumer Behavior - There is a challenge in regaining premium brand status as consumers have become accustomed to lower prices, which may hinder the company's long-term profitability goals [4].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 ______________________________ ...

Is the company's turnaround plan actually working?Shares of athletic apparel company Under Armour (UA 18.64%) (UAA 19.32%) raced higher on Thursday after the company pleasantly surprised investors with its financial report for its fiscal first quarter of 2025. As of 11:30 a.m. ET, both share classes of Under Armour stock were up more than 17%.A plan to turn around the brandIn October 2019, Under Armour founder Kevin Plank stepped down as its CEO. The stock has drifted about 70% lower since then. The company ...

Core Viewpoint - Under Armour reported a significant decline in quarterly sales and adjusted its full-year profit guidance after settling a long-standing securities lawsuit for $434 million, although it exceeded Wall Street expectations for earnings and revenue [1][2]. Financial Performance - Quarterly sales fell to $1.18 billion, down approximately 10% from $1.32 billion a year earlier [2]. - The company reported a loss of $305.4 million, or 70 cents per share, compared to a profit of $10 million, or 2 cents per share, a year earlier [1]. - Adjusted earnings per share were 1 cent, beating the expected loss of 8 cents, while revenue surpassed expectations of $1.15 billion [1]. Lawsuit Settlement - Under Armour settled a securities lawsuit for $434 million, which accused the company of defrauding shareholders regarding revenue growth [2]. - The settlement will be paid using cash from its revolving credit facility, and the company did not admit fault or wrongdoing [2]. Future Guidance - The company now expects to incur losses in fiscal 2025, forecasting losses per share between 53 cents and 56 cents, and adjusted earnings per share between 19 cents and 22 cents [2][3]. - Previously, Under Armour anticipated full-year earnings of 2 cents to 5 cents per share and adjusted earnings between 18 cents and 21 cents per share [3]. Restructuring Efforts - Under Armour is undergoing a broad restructuring plan to regain market relevance, reverse sales decline, and boost profits, including layoffs and reduced promotions [3]. - The company aims to position itself as a premium brand, taking inspiration from Nike's strategy [3]. Sales Breakdown - In North America, sales dropped 14% to $709 million, better than the expected $669.1 million [4]. - Wholesale revenue decreased by 8% to $681 million, while direct-to-consumer sales fell 12% to $480 million [4]. - Online sales plummeted 25%, attributed to planned decreases in promotional activities [4]. Product Revenue Trends - Apparel revenue fell 8%, footwear sales dropped 15%, and accessories revenue slid 5% [4]. Strategic Acquisitions - Under Armour announced the acquisition of sustainable fashion brand Unless Collective, aiming to enhance its brand strategy and expand into sustainable fashion [4][5]. - Eric Liedtke, the founder of Unless Collective, will join Under Armour as executive vice president of brand strategy [5].

Exhibit 99.1 UNDER ARMOUR REPORTS FIRST QUARTER 2025 RESULTS; UPDATES FISCAL 2025 OUTLOOK BALTIMORE, Aug. 8, 2024 – Under Armour, Inc. (NYSE: UA, UAA) announced unaudited financial results for its first quarter fiscal 2025, which ended June 30, 2024. The company reports its financial performance following accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures described be ...

Industry Veteran and Former adidas Group Executive Will Join the Company Following the Acquisition of UNLESS COLLECTIVE, INCBALTIMORE, Md., Aug. 6, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced that Eric Liedtke will join the company as Executive Vice President of Brand Strategy following the completion of its acquisition of UNLESS COLLECTIVE, INC (UNLESS), a zero-plastic regenerative fashion brand. The transaction is expected to be completed later this week. Eric Liedtke, Under ...

BALTIMORE, July 24, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) plans to release its first quarter fiscal 2025 (ended June 30, 2024) results on August 8, 2024. Following the news release at approximately 7:00 a.m. Eastern Time (ET), Under Armour management will host a conference call at approximately 8:30 a.m. ET to review results. This call will be webcast live and archived at https://about.underarmour.com/investor-relations/financials. About Under Armour, Inc. Under Armour, Inc., headquartered ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...