Latest news with #UAA
Yahoo
a day ago
- Business
- Yahoo
UAA Q1 Earnings Call: Under Armour Discusses Brand Reset Amid Revenue Decline and Strategic Shifts
Athletic apparel company Under Armour (NYSE:UAA) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 11.4% year on year to $1.18 billion. Its non-GAAP loss of $0.08 per share was in line with analysts' consensus estimates. Is now the time to buy UAA? Find out in our full research report (it's free). Revenue: $1.18 billion (11.4% year-on-year decline) Adjusted EPS: -$0.08 vs analyst estimates of -$0.08 (in line) Revenue Guidance for Q2 CY2025 is $1.13 billion at the midpoint, below analyst estimates of $1.17 billion Adjusted EPS guidance for Q2 CY2025 is $0.02 at the midpoint, above analyst estimates of $0 Operating Margin: -6.1%, down from -0.3% in the same quarter last year Locations: 441 at quarter end, up from 440 in the same quarter last year Constant Currency Revenue fell 9.8% year on year (-4.9% in the same quarter last year) Market Capitalization: $2.71 billion Under Armour's first quarter results reflected the company's efforts to reposition its brand and improve the quality of its revenue, as discussed by CEO Kevin Plank and CFO Dave Bergman. Management attributed the year-over-year sales decline to lower direct-to-consumer (DTC) volumes, especially in e-commerce, and reduced wholesale activity. Plank explained that strategic decisions to limit discounting and streamline product offerings were intended to protect brand equity, even as these actions pressured top-line results. Additionally, ongoing supply chain management and SKU reductions have been central to Under Armour's plan to create a more focused and premium product mix. Plank acknowledged, 'While we're never satisfied with declining revenue, our fourth quarter results allowed us to exceed our fiscal '25 outlook, demonstrating some of the foundational traction we're gaining as we reposition the Under Armour brand.' Looking forward, Under Armour's guidance reflects continued caution as the company navigates a dynamic retail environment and the impact of evolving trade policy. Management emphasized the importance of maintaining gross margin improvements through premiumization, disciplined inventory management, and a shift toward higher-priced, differentiated products. Plank highlighted the upcoming launch of the UA Halo collection and a renewed focus on compelling storytelling and influencer partnerships to drive consumer engagement. CFO Dave Bergman stated that while the company is limiting its outlook to the next quarter due to tariff uncertainties, efforts to diversify sourcing and manage SG&A expenses remain priorities. The leadership team stressed that executing on product innovation, targeted marketing, and operational efficiency will be key to stabilizing performance and positioning Under Armour for future growth. Management attributed the quarter's results to deliberate reductions in promotions, ongoing operational streamlining, and the impact of external trade and market pressures. The leadership team highlighted several strategic actions shaping both current performance and long-term brand positioning. E-commerce and DTC Reset: Under Armour's decision to reduce discounting and focus on full-price sales in its DTC channels led to lower e-commerce revenue but improved average unit retail and a healthier brand profile. Plank noted, 'Our full price sales mix on our website [was] up double-digits year-over-year with promo and clearance down.' SKU Rationalization and Premiumization: The company accelerated efforts to streamline its product assortment, removing lower-value activities and reducing SKUs to concentrate on premium, higher-margin categories. Plank described this as 'selling so much more of so much less at a much higher full price.' Category Management Model: A transition to category-led operating structures, with dedicated teams responsible for core areas such as training, running, and sportswear, was implemented to improve execution, speed, and regional relevance. International Market Performance: EMEA outperformed other regions due to strong leadership and strategic category focus, while APAC continued to face challenges from a highly promotional environment and ongoing business resets. Plank noted, 'We're maintaining the discipline to protect the brand strength we've built [in EMEA].' Supply Chain and Cost Management: Efforts to optimize the supply chain, including diversifying sourcing and driving cost efficiencies, contributed to gross margin gains. Bergman stated that supply chain benefits and pricing discipline were key factors, though he cautioned that these benefits may moderate in future quarters. Under Armour's near-term outlook is shaped by ongoing brand repositioning, operational discipline, and uncertainty from recent tariff changes, which management expects will influence both revenue and profitability. Sourcing Diversification and Tariff Mitigation: Management is proactively evaluating strategies to offset the impact of new tariffs, including diversifying sourcing away from affected regions, cost-sharing initiatives with partners, and targeted price adjustments. Bergman emphasized the company's balanced sourcing footprint, with roughly 30% from Vietnam, 20% from Jordan, and the rest spread across other countries. Product Innovation and Storytelling: The upcoming UA Halo collection, enhanced influencer partnerships, and a renewed focus on storytelling are intended to differentiate the brand and support premium pricing. Plank highlighted that 'comprehensive go-to-market strategy that inspires consumers to want to buy UA at premium price points' will be central to the next phase. SG&A and Cost Controls: The company plans to maintain tight control over SG&A, concentrating investments on high-impact initiatives while reducing discretionary spending and third-party costs. Bergman stated that planned restructuring and operational efficiencies are expected to deliver meaningful cost savings, though caution remains around cutting too deeply in areas critical for future growth. In the coming quarters, our analysts will be watching (1) whether Under Armour can sustain gross margin improvements as promotional discipline continues, (2) evidence of renewed growth in North America as the brand reset matures, and (3) the reception of key product launches like UA Halo and their impact on consumer engagement. The evolving tariff environment and progress in international markets will also be critical to track. Under Armour currently trades at a forward P/E ratio of 18.7×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
14-05-2025
- Business
- Yahoo
Morning Movers: UnitedHealth sinks following CEO exit and outlook suspension
Stock futures are mixed, signaling a potential pause following Monday's rally driven by optimism over a temporary U.S.-China trade deal. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter In corporate news, UnitedHealth Group shares plunged 10% after CEO Andrew Witty stepped down, with former CEO Stephen Hemsley stepping in. The company also suspended its outlook due to rising medical costs. Bitcoin has regained value above $103,800, aligning with Coinbase's rise after inclusion into the S&P 500. In pre-market trading, S&P 500 futures were flat, Nasdaq futures rose 0.21% and Dow futures fell 0.44%. Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS – Perion Network (PERI) up 7% Under Armour (UAA) up 3% Legend Biotech (LEGN) up 2% Altimmune (ALT) up 2% (JD) up 1% Y-mAbs Therapeutics (YMAB) up 1% Urban One (UONE) up 1% DOWN AFTER EARNINGS – International Game (IGT) down 8% Honda (HMC) down 4% CyberArk (CYBR) down 1% LOWER – UnitedHealth (UNH) down 10% after announcing Andrew Witty's decision to step down as CEO and suspending its FY25 guidance Pinterest (PINS) down 2% after The Information reported Google (GOOGL) is working on a visual inspiration product that could compete with Pinterest, with the feature showing users images, such as ideas for fashion or interior design, and lets them save the images in different folders Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on UAA: Disclaimer & DisclosureReport an Issue Under Armour sees Q1 adjusted EPS 1c-3c, consensus 0c Under Armour reports Q4 adjusted EPS (8c), consensus (8c) Notable companies reporting before tomorrow's open Under Armour price target lowered to $6 from $8 at Barclays Is UAA a Buy, Before Earnings?
Yahoo
13-05-2025
- Business
- Yahoo
Under Armour (UAA) Reports Q4 Loss, Tops Revenue Estimates
Under Armour (UAA) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this sports apparel company would post earnings of $0.03 per share when it actually produced earnings of $0.08, delivering a surprise of 166.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Under Armour , which belongs to the Zacks Textile - Apparel industry, posted revenues of $1.18 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.52%. This compares to year-ago revenues of $1.33 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Under Armour shares have lost about 25% since the beginning of the year versus the S&P 500's decline of -0.6%. While Under Armour has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Under Armour: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $1.17 billion in revenues for the coming quarter and $0.36 on $5.1 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Guess (GES), is yet to report results for the quarter ended April 2025. This clothing company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of -88.9%. The consensus EPS estimate for the quarter has been revised 15% lower over the last 30 days to the current level. Guess' revenues are expected to be $630.96 million, up 6.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Under Armour, Inc. (UAA) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Washington Post
13-05-2025
- Business
- Washington Post
Under Armour: Fiscal Q4 Earnings Snapshot
BALTIMORE — BALTIMORE — Under Armour Inc. (UAA) on Tuesday reported a loss of $67.5 million in its fiscal fourth quarter. The Baltimore-based company said it had a loss of 16 cents per share. Losses, adjusted for one-time gains and costs, were 8 cents per share. The results beat Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for a loss of 9 cents per share.
Yahoo
13-05-2025
- Business
- Yahoo
Under Armour: Fiscal Q4 Earnings Snapshot
BALTIMORE (AP) — BALTIMORE (AP) — Under Armour Inc. (UAA) on Tuesday reported a loss of $67.5 million in its fiscal fourth quarter. The Baltimore-based company said it had a loss of 16 cents per share. Losses, adjusted for one-time gains and costs, were 8 cents per share. The results beat Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for a loss of 9 cents per share. The sports apparel company posted revenue of $1.18 billion in the period, also beating Street forecasts. Nine analysts surveyed by Zacks expected $1.16 billion. For the year, the company reported a loss of $201.3 million, or 47 cents per share. Revenue was reported as $5.16 billion. For the current quarter ending in June, Under Armour expects its per-share earnings to range from 1 cent to 3 cents. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on UAA at
