Under Armor has completed the 2025 financial year with a significant drop in sales. Nevertheless, the American sporting goods manufacturer sees himself on the right track to realign his brand. “We are in the process of reviving our brand relevance,” said CEO Kevin Plank on Wednesday when submitting the current business figures.
In the past financial year, Under Armor recorded a decline in sales from nine percent to $ 5.2 billion. The home market of North America developed particularly weakly, where revenues decreased by eleven percent to $ 3.1 billion. International business also had to accept losses. Here sales dropped by six percent to $ 2.1 billion. While the EMEA region developed stably, the Asia-Pacific region recorded a significant minus of 13 percent. In Latin America, revenues decreased by six percent.
In the Wholesale business, sales fell eight percent to $ 3.0 billion. In direct sales, the decline was even eleven percent to $ 2.1 billion. The e-commerce area was particularly affected, the proceeds of which decreased by 23 percent due to planned cuts in discounts. The proportion of online business in total sales of direct sales was 35 percent last year.
The development in the individual product groups also showed a similar picture: sales in the clothing segment decreased by nine percent to $ 3.5 billion, while the Footwear area recorded a decrease from $ 13 percent to $ 1.2 billion. A ray of hope was the accessories area, which ended with a slight plus from one percent to $ 411 million.
Adjusted profit despite the loss of net loss
Under Armor had to show an operational loss of $ 185 million. However, adjusted for special effects, the company achieved an operational profit of $ 198 million. The bottom line was a net loss of $ 201 million, while the adjusted net profit was $ 135 million. The diluted loss per share was $ 0.47, the adjusted profit per share was $ 0.31.
For the first quarter of the current financial year 2026, under Armor still anticipates a headwind in view of the continued difficult macroeconomic environment. Sales are said to decrease by four to five percent. In North America, a similar size is expected, while the region of Asia-Pacific has to expect a decline in the middle double-digit percentage range. In the EMEA region, on the other hand, the company assumes growth in the high single-digit percentage range.
The gross margin should improve easily, while the operational expenses – adjusted for one -off effects – should be slightly below the previous year’s level. The adjusted operational result is expected between $ 20 and $ 30 million, the adjusted profit per share should be $ 0.01 to $ 0.03.