Q2 2025 Under Armour Inc Earnings Call Transcript
Key Points
- Under Armour Inc (UAA) reported a significant improvement in gross margin, driven by reduced promotions and discounting, and better product costing.
- The company achieved a $50 million second-quarter adjusted operating income beat compared to its previous outlook.
- Under Armour Inc (UAA) is focusing on premiumization, with a shift towards more full-price sales and a reduction in promotional activities.
- The company is investing in marketing and brand-building efforts to deepen its connection with consumers.
- Under Armour Inc (UAA) is seeing strong feedback on new products, particularly in men's apparel and footwear, with plans for significant product launches in the coming seasons.
- Revenue was down 11% to $1.4 billion, with a 13% decline in North America due to softer full-price wholesale demand and lower sales to the off-price channel.
- The North American DTC business experienced a decline, driven by a continued decrease in e-commerce sales and lower retail store sales.
- EMEA and APAC regions also saw revenue declines, with APAC facing a challenging macro environment impacting consumer traffic.
- The company is undergoing a restructuring plan, which includes exiting a distribution facility in California, leading to expected restructuring charges and expenses.
- Despite gross margin improvements, the company anticipates continued pressure on revenue and profitability in the second half of the fiscal year.
Good morning, and welcome to the Under Armour Q2 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded. I'd now like to turn the call to Lance Allega, Senior Vice President, Investor Relations, Treasury and Corporate Development. Please go ahead.
Good morning, and welcome to Under Armour's second-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 management's current view of our business as of November 7, 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 benefits may differ materially from those expressed or
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