Under Armour(UA) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 Fiscal 2025 decreased by 6% to $1.4 billion, with North America revenue down 8$844 million and international revenue down 1% to $558 million[3]. - Net revenues for the three months ended December 31, 2024, were$1,401,039, a decrease of 5.7% compared to $1,486,043 in the same period of 2023[20]. - North America segment revenues decreased by 7.8$843,620 for the three months ended December 31, 2024, from $915,335 in 2023[20]. - Under Armour's total net revenue growth for the nine months ended December 31, 2024, was a decline of 8.8$14 million, with adjusted operating income at $60 million after excluding certain charges[3]. - Net income for the quarter was$1 million, while adjusted net income stood at $35 million[3]. - Gross profit for the three months ended December 31, 2024, was$665,155, representing a gross margin of 47.5%, compared to $670,639 and 45.1$1,234 for the three months ended December 31, 2024, compared to a net income of $110,753 in 2023[20]. - For the nine months ended December 31, 2024, Under Armour reported a net loss of$133.81 million compared to a net income of $225.47 million for the same period in 2023[30]. - The adjusted diluted earnings per share for the nine months ended December 31, 2024, was$0.39, while the GAAP diluted net loss per share was $(0.31)[43]. Expenses and Charges - Selling, general, and administrative expenses rose by 6$638 million, primarily due to increased marketing investments[3]. - Selling, general and administrative expenses increased to $637,701, accounting for 45.5$42 million in restructuring and impairment charges, with total incurred charges thus far amounting to $57 million[5]. - The company experienced a significant increase in restructuring charges, totaling$13,945 for the three months ended December 31, 2024[20]. Cash Flow and Assets - Cash and cash equivalents decreased to $726,877 as of December 31, 2024, from$858,691 as of March 31, 2024[28]. - The company's cash flows from operating activities for the nine months ended December 31, 2024, were $142.88 million, a decrease from$476.86 million in the prior year[30]. - Under Armour's cash, cash equivalents, and restricted cash decreased from $1.06 billion at the end of December 2023 to$745.17 million at the end of December 2024[30]. - Total assets decreased to $4,630,965 as of December 31, 2024, down from$4,760,734 as of March 31, 2024[28]. - The company reported a significant increase in accounts receivable, totaling $136.66 million for the nine months ended December 31, 2024, compared to$58.04 million in the previous year[30]. Future Outlook - The updated fiscal 2025 outlook anticipates a revenue decline of approximately 10%, with a gross margin increase of about 160 basis points expected[7]. - Operating loss is projected to be between $179 million and$189 million, with adjusted operating income expected to be between $185 million and$195 million[7]. - Capital expenditures are forecasted to be between $170 million and$180 million, a decrease from previous estimates[12]. - The company plans for a GAAP loss from operations in the fiscal year ending March 31, 2025, to be between $179 million and$189 million, with adjusted income from operations estimated between $185 million and$195 million[47]. Share Repurchase - Under Armour repurchased $25 million of its Class C common stock, retiring 2.8 million shares during Q3[4]. - The company repurchased$65 million in common shares during the nine months ended December 31, 2024, compared to $75 million in the same period of the previous year[30]. Store Operations - Under Armour's total company-owned and operated doors decreased from 440 in December 2023 to 448 in December 2024, with North America total doors decreasing from 200 to 196[50].