Under Armour’s first quarter results reflected ongoing efforts to reposition the brand through tighter control of promotional activity and a sharper focus on premium product positioning. Although revenue declined year over year, management credited proactive inventory management, a disciplined reduction in discounting, and advances in direct-to-consumer (DTC) strategies as key drivers. CEO Kevin Plank noted, “Our fourth quarter results allowed us to exceed our fiscal outlook, demonstrating some of the foundational traction we’re gaining as we reposition the Under Armour brand.” The company’s transformation plan emphasized higher-quality revenue and brand equity over short-term volume gains, setting the stage for a more sustainable business model.
Is now the time to buy UAA? Find out in our full research report (it’s free).
Under Armour (UAA) Q1 CY2025 Highlights:
- Revenue: $1.18 billion vs analyst estimates of $1.17 billion (11.4% year-on-year decline, 1.3% beat)
- Adjusted EPS: -$0.08 vs analyst estimates of -$0.08 (in line)
- Adjusted EBITDA: $3.41 million vs analyst estimates of -$4.15 million (0.3% margin, significant beat)
- 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: $2.95 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Under Armour’s Q1 Earnings Call
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Jay Sole (UBS) asked about the status of the North American reset and how it is progressing. CEO Kevin Plank detailed the leadership changes and emphasized a comprehensive approach involving product, storytelling, and targeted marketing as key to regaining brand affection.
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Simeon Siegel (BMO Capital Markets) inquired about the normalization of e-commerce and the timeline for revenue stabilization as promotions are reduced. Plank responded that the e-commerce shift is focused on building a healthier, brand-right foundation with loyalty and dynamic content, while Bergman highlighted the full-price sales mix and ongoing digital investments.
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Sam Poser (Williams Trading) questioned inventory trends and the relationship between unit and dollar inventory as the company moves toward a premium strategy. Plank explained that inventory is being tightly managed and that higher average unit retail is a key focus in elevating the brand.
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Laurent Vasilescu (BNP Paribas) asked about the order book and whether recent tariff news had changed partner behavior. Bergman said there were no significant cancellations and that partners were seeing improvements in product design and style, with stronger execution expected as new collections roll out.
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Peter McGoldrick (Stifel) requested insight into the evolving product pyramid and its impact on average selling prices and gross margin. Plank described the goal to increase the share of “best” products as a driver of both pricing power and brand positioning, while Bergman noted that mix changes and reduced promotions should support margin improvement.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of Under Armour’s North American brand reset, including e-commerce and promotional strategies, (2) the impact of new premium product launches like UA Halo and continued innovation in footwear and apparel, and (3) the company’s ability to offset potential headwinds from tariffs and global supply chain adjustments. Progress in international market momentum and execution of cost control initiatives will also be key indicators.
Under Armour currently trades at $7.10, up from $6.22 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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