Q1 2025 Under Armour Inc Earnings Call Transcript
Key Points
- Under Armour Inc (UAA) started the fiscal year ahead of expectations, showing early progress in executing its 'Protect This House' strategy.
- The company has made significant leadership hires, including Eric Liedtke as EVP of Brand Strategy, to enhance brand growth and strategy.
- Under Armour Inc (UAA) is focusing on reducing SKU/style count by 25% to streamline operations and improve product focus.
- The company is seeing positive traction from shifting its marketing strategy to focus more on full-price selling rather than discounts.
- Gross margin improved by 110 basis points to 47.5%, driven by reduced discounting and supply chain benefits.
- Revenue declined by 10% to $1.2 billion, with a significant 14% drop in North America due to softer wholesale demand and lower off-price channel sales.
- The Direct-to-Consumer (DTC) business saw a 12% decline, primarily due to a 25% drop in e-commerce sales from reduced promotional activity.
- APAC revenue decreased by 10%, impacted by a softening macro environment and competitive pressures.
- SG&A expenses increased by 42% to $837 million, although adjusted SG&A was down 6% due to cost management actions.
- The company expects continued revenue declines in the second quarter, with a projected 12% decrease compared to the prior year.
Good morning. And welcome to the Under Armour first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Lance Allega, SVP, Investor Relations, Treasury and Corporate Development. Please go ahead.
Good morning. And welcome to Under Armour's first quarter fiscal 2025 earnings conference call. Today's event is being recorded for replay. Joining us on today's call are Under Armour President and CEO, Kevin Plank; and CFO, Dave Bergman.
Our remarks today will include certain forward-looking statements that reflect Under Armour's management's current view of our business as of August 8, 2024. These statements may include projections for our business in the present and future quarters and fiscal years. Forward-looking statements are not guarantees of future business performance, and our actual results may differ materially from those
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