Baltimore based brand, Under Armour, has raised its profit forecast for fiscal 2025 after stronger Q3 results which were attributed to less discounting & stronger sales in North America.
Founded by Kevin Plank back in 1996, Under Armour rose to fame for its ‘sweat wicking’ fabric technology across its performance apparel. With its roots firmly in American football, Under Armour had its first IPO on the Nasdaq in 2005, initially raising $153 million. From sponsoring Major League Baseball to dropping their own range of technical trainers it would be fair to say the Baltimore based brand has become a household name. Here in the UK, the American sportswear brand found a slightly different home on 110 sporting’ Scousers that made it one of their own in a pre-pandemic era, just like the more recent ON running trainer craze in the Mersey city. After reporting its latest financials for Q3 Fiscal 2025, Under Armour has raised its annual profit forecast.
Beating previous expectations with less discounting & a stronger recovery in North America, Under Amour posted Q3 profit of 8 cents per share compared to previous estimates of 4 cents per share. Q3 revenue in North America was down 8% compared to 13% from the previous quarter & 12% from the same period last year. Under Armour reported operating income for the latest quarter up to December 31st 2024 of $14 million with an adjusted operating income of $60 million. Net income was $1 million and adjusted net income was $35 million. Revenue for the latest quarter fell by 6% to $1.4 billion with sales in North America dropping by 8% to $844 million.
Wholesale revenue for the quarter dropped by 1% percent to $705 million whilst DTC (direct to consumer) revenue was also down by 9% to $673 million. Store revenue was down 1% & e-commerce revenue was down 20% which Under Armour attributed to a decrease in promotional activity. E-commerce made up 39% of its DTC (direct to consumer) business for the latest quarter. After returning as CEO in April 2024, Kevin Plank has reduced promotions and the Under Armour workforce, keeping inventory tight across some products. Under Armour also expects Trump’s latest tariffs to not have a significant impact on the business with only around 3% of its products imported from China. The Baltimore based brand now expects comparable revenue to decline by 10% for full fiscal 2025, an operating loss between $179 & $189 million with an operating income between $185 & $195 million.
We are pleased our quarterly results exceeded expectations. As we sharpen our focus on strengthening the Under Armour brand, our updated product strategy and enhanced marketplace discipline combined with the shift to a category-led operating model are driving our transformation. Additionally, we will enter a pivotal new chapter in our marketing strategy by launching a dynamic, multi-year initiative of storytelling that showcases our incredible products, talented athletes, and influential creators.
Kevin Plank – President & CEO Under Armour
