The chart below shows how UA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UA sees a -3.53% change in stock price 10 days leading up to the earnings, and a +0.97% change 10 days following the report. On the earnings day itself, the stock moves by +3.16%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Decline Analysis: Revenue decline of 6% to $1.4 billion was better than the forecast of down approximately 10%.
Gross Margin Improvement: Third quarter gross margin increased by 240 basis points year-over-year to 47.5%, driven by supply chain benefits and reduced discounting.
Positive Operational Performance: Adjusted operating income reached $60 million, reflecting a positive operational performance despite challenges in revenue.
Revenue Outlook Improvement: Raised full-year revenue outlook to a decline of approximately 10%, an improvement from the previous expectation of low-double-digit contraction.
Stock Repurchase Commitment: Repurchased $25 million of Class C stock during the quarter, retiring 2.8 million shares, demonstrating commitment to shareholder value.
Negative
Revenue Decline Analysis: Revenue declined by 6% to $1.4 billion, worse than the previous expectation of a 10% decline, indicating ongoing challenges in sales performance.
North America Revenue Decline: North America experienced an 8% revenue decline, primarily due to a decrease in direct-to-consumer (DTC) business, highlighting difficulties in eCommerce sales.
Decline in Direct Sales: Direct-to-consumer revenue fell by 9%, driven by a 20% decrease in eCommerce sales, reflecting the impact of reduced promotional activities on consumer engagement.
Latin America Revenue Decline: Latin America saw a significant revenue decline of 16%, primarily due to lower distributor sales, indicating regional market weaknesses.
Rising SG&A Expenses: SG&A expenses rose by 6% to $638 million, driven by higher marketing expenses and restructuring charges, which could pressure profitability moving forward.
Under Armour, Inc. (NYSE:UA) Q3 2025 Earnings Call Transcript
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