UAA Earnings Prediction
The chart below shows how UAA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UAA sees a +3.37% change in stock price 10 days leading up to the earnings, and a +0.09% change 10 days following the report. On the earnings day itself, the stock moves by -1.24%. This data can give you a slight idea of what to expect for the next quarter's release.
UAA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.40B
-10.70%
18.19%
Gross Margin
49.76%
4.14%
4.67%
Operating Margin
11.87%
33.37%
1645.59%
Net Margin
12.18%
82.34%
-147.21%
EPS
0.39
69.57%
-155.71%
No Data Available
UAA Earnings Analysis
Under Armour, Inc. Corporation (UAA.N) Earnings Conference Call
Positive
Cash Position Strength: 1. Strong Cash Position: Under Armour reported a cash position of $531 million, maintaining no borrowings under its $1.1 billion revolving credit facility, indicating robust liquidity.
Gross Margin Enhancement: 2. Gross Margin Improvement: The company achieved a gross margin of 49.8%, an increase of 200 basis points year-over-year, driven by lower product costs and reduced discounting in its direct-to-consumer business.
Operating Income Exceeds Expectations: 3. Adjusted Operating Income Beat: Under Armour's adjusted operating income for Q2 was $166 million, exceeding the previous outlook by approximately $50 million, with plans to reinvest half of this into marketing and brand-building efforts.
Full-Price Sales Surge: 4. Increased Full-Price Sales: Full-price sales in the direct-to-consumer segment rose to about 50% of e-commerce revenue, up from 30% a year ago, reflecting a successful strategy to reduce promotions and enhance brand positioning.
Loyalty Program Expansion: 5. Growing Loyalty Program: The UA rewards program now has nearly 13 million members, contributing to approximately 50% of U.S. direct-to-consumer revenue, with active members showing nearly double the repurchase rate compared to non-members.
Negative
Revenue Decrease Analysis: 1. Revenue Decline: Under Armour's revenue decreased by 11% to $1.4 billion, with a 13% decline in North America due to weaker full-price wholesale demand and lower sales in the off-price channel.
E-commerce Sales Decline: 2. E-commerce Struggles: The North American direct-to-consumer (DTC) business saw an 8% decline, driven by a 21% drop in e-commerce sales as a result of reduced promotional activities.
Wholesale Revenue Decline: 3. Wholesale Revenue Drop: Wholesale revenue fell by 12% in the second quarter, attributed to softer demand in both full-price and distributor businesses, alongside lower off-price channel sales.
Regional Revenue Declines: 4. Segment Revenue Declines: Revenue in the Asia-Pacific region dropped by 11%, and Latin America saw a 13% decline, with both regions experiencing decreases in wholesale and DTC businesses amid a challenging macro environment.
Rising SG&A Expenses: 5. Increased SG&A Expenses: Adjusted SG&A expenses are expected to rise in the second half of the year, contrasting with a 10% decline in the first half, primarily due to a significant increase in marketing investments.
UAA FAQs
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UAA Earning Call Sentiment
Under Armour, Inc. (UAA) Q2 2025 Earnings Call Transcript
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UAA.N
-1.97%Positive
The earnings call reveals mixed sentiments. Financial performance shows a revenue decline but improved margins and profitability. The raised guidance for operating income and EPS is positive, yet supply chain challenges and competitive pressures persist. Q&A highlights strategic marketing investments and product development, but lacks clarity on gross margin opportunities and product feedback. Given the company's market cap, the stock price is likely to remain stable, with no major catalysts for significant movement.
