Thu, May 22, 8:37 PM (21 days ago)
### Summary of Under Armour, Inc. (UAA) **Company Overview:** Under Armour, Inc. (UAA) is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories for men, women, and youth. The company's products are engineered for various climates and are worn by athletes at all levels, from youth to professional, as well as by consumers with active lifestyles. Under Armour generates revenue through sales to national, regional, independent, and specialty wholesalers and distributors, as well as through its direct-to-consumer sales channel, which includes Brand and Factory House stores and e-commerce websites. **Financial Performance:** - **Revenue:** For the fiscal year ended March 31, 2025, Under Armour reported total net revenues of $5.2 billion, a decrease of 9.4% compared to the previous year. The decrease was driven by a decline in wholesale revenue (8.1%) and direct-to-consumer revenue (10.5%). - **Net Income:** The company reported a net loss of $201.3 million for the fiscal year 2025, compared to a net income of $232.0 million in the previous year. - **Gross Margin:** Gross margin increased to 47.9% from 46.1%, primarily driven by supply chain benefits and pricing benefits due to lower levels of discounting and promotions within the direct-to-consumer channel. - **Operating Expenses:** Selling, general, and administrative expenses increased by 8.4% to $2.6 billion, primarily due to higher net litigation expenses and restructuring charges. **Strategic Overview:** Under Armour's long-term growth strategy focuses on increasing sales of apparel, footwear, and accessories; growing the direct-to-consumer sales channel; and expanding wholesale distribution. The company is also investing in its digital strategy to enhance consumer engagement and strengthen brand connectivity through multiple digital touchpoints. **Future Outlook:** Under Armour faces several challenges, including economic downturns, increased competition, and supply chain disruptions. The company is executing a restructuring plan to strengthen financial and operational efficiencies, which includes cost-cutting measures and transformational initiatives. The company expects to incur up to $160 million in pre-tax restructuring and related charges, with the plan expected to be substantially complete by the end of fiscal 2026. **Risk Factors:** - **Economic Risks:** The company's business depends on consumer purchases of discretionary items, which can be negatively impacted during economic downturns or periods of inflation. - **Competition:** The market for performance apparel, footwear, and accessories is highly competitive, with many new competitors and increased competition from established companies. - **Supply Chain Risks:** The company relies on third-party suppliers and manufacturers, which can lead to disruptions in the supply of fabrics or raw materials. - **Market Position Changes:** The company's market position could be negatively impacted by changes in consumer preferences, increased competition, or other market factors. **Financial Condition:** Under Armour has a strong financial condition, with $501.4 million in cash and cash equivalents as of March 31, 2025. The company believes its cash and cash equivalents, cash from operations, and borrowings available under its credit facilities are adequate to meet its liquidity needs and capital expenditure requirements for at least the next twelve months. **Market Position:** Under Armour's Class A Common Stock and Class C Common Stock are traded on the New York Stock Exchange under the symbols "UAA" and "UA," respectively. As of May 15, 2025, there were 2,197 record holders of Class A Common Stock, 5 record holders of Class B Convertible Common Stock, and 1,420 record holders of Class C Common Stock.