US-based sportswear group Under Armour posted a third-quarter revenue fall and deepened its full-year loss outlook, blaming weaker North American demand and higher US tariffs.
Net revenue for the three months to 31 December 2025 slipped 5% year-on-year to $1.33bn, or 6% lower on a currency-neutral basis.
The group reported a quarterly net loss of $431m, reflecting a $247m valuation allowance tied to US federal deferred tax assets.
Adjusted net income reached $37m.
Wholesale sales declined 6% to $660m, while direct-to-consumer revenue dropped 4% to $647m, including a 7% fall in online sales.
Apparel revenue eased 3% to $934m, footwear slid 12% to $265m, and accessories were down 3% to $108m.
Gross margin contracted by 310 basis points to 44.4%, driven mainly by tariffs alongside pricing pressures and an unfavourable sales mix.
Selling, general and administrative (SG&A) costs rose 4% to $665m due largely to a $99m litigation reserve and $3m in restructuring-related transformation expenses.
On an adjusted basis, SG&A fell 7%.
Restructuring charges of $75m contributed to an operating loss of $150m, though adjusted operating income stood at $26m.
Diluted loss per share came in at $1.01 while adjusted earnings per share were $0.09.
North America revenue dropped 10% to $757m, offset partly by a 3% rise internationally, with EMEA up 6% and Latin America climbing 20%. Meanwhile, revenue for the Asia Pacific declined by 5%.
Inventory edged down 2% to $1.1bn, and the company ended the quarter with $465m in cash plus $600m in restricted investments for upcoming debt repayments.
For the nine months ended 31 December 2025, net revenues were $3.79bn, down from $3.98bn for the nine months ended 31 December 2024.
SG&A expenses decreased to $1.77bn in 2025 from $1.99bn in 2024.
Net loss widened significantly to $452.3m in 2025, compared with a net loss of $133.8m in 2024.
For the full year, Under Armour now expects revenue to drop 4% and forecasts an operating loss of $154m, compared with earlier guidance of a $56m to $71m loss.
Adjusted operating income is projected near $110m, with diluted loss per share between $1.24 and $1.25.
“Under Armour widens loss outlook as tariffs bite” was originally created and published by Retail Insight Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
