Under Armour slips into the red in Q2

US sportswear provider Under Armour Inc. has reported expected revenue declines and losses in the second quarter of the 2025/26 financial year. The latest results, presented by the company on Thursday, were slightly better than management and analysts had previously forecast.

In the period from July to September, Under Armour generated revenue of 1.33 billion dollars. This represented a decrease of 4.7 percent compared to the same quarter last year. Adjusted for currency fluctuations, revenue fell by 5.8 percent.

Declines in North America and Asia impact revenue development

In North America, revenue shrank by 8.3 percent to 791.5 million dollars. In the Asia-Pacific region, it fell by 13.7 percent to 179.2 million dollars.

Conversely, there was growth in the EMEA region, which includes Europe, the Middle East and Africa. There, quarterly revenue increased by 12.2 percent to 317.7 million dollars. In Latin America, revenue grew by 14.6 percent to 53.8 million dollars.

Higher tariffs affect gross margin

Higher tariffs and a less favourable distribution channel mix contributed to the gross margin falling to 47.3 percent. This is down from 49.8 percent in the same quarter last year. Additionally, negative special effects impacted the result. Operating profit shrank by approximately 90 percent to 17.0 million dollars.

The bottom line showed a reported net loss of 18.8 million dollars. This follows a surplus of 170.4 million dollars in the same period last year. Adjusted for special effects, net profit decreased from 131.1 million to 15.3 million dollars. However, this surpassed the expectations of the company and the financial markets.

Group CEO Kevin Plank sees further progress in ongoing reforms

President and CEO Kevin Plank called the surprisingly solid figures and particularly the progress in North America “encouraging”. The company has established its strategy and new business model and remains “disciplined and focused”. The response from consumers and retail partners underscores the successful realignment. This is “driven by stronger products, more concise storytelling and a new confidence in the Under Armour brand,” emphasised Plank.

For the full 2025/26 financial year, management now forecasts a revenue decline of 4 to 5 percent. The target range for operating profit is between 19 and 34 million dollars.

This article was translated to English using an AI tool.

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