Under Armour Issues 2025 Profit Warning, Shares Fall 13% as Revenue Misses Estimates

Under Armour has issued a profit warning for fiscal year 2025, forecasting annual sales below analysts' expectations. The company reported a 5% decline in revenue to $1.3 billion, with diluted earnings per share at $0.02 and adjusted diluted earnings per share at $0.11. Net income was $7 million, while adjusted net income was $49 million. Inventory levels decreased by 19%. The company's North America revenue fell by 10.4%, and footwear sales dropped by 10.6%. Additionally, Under Armour's net income plummeted by 96.2%, and the company reported an operating loss. Shares of Under Armour fell 13% pre-market following the announcement. The firm also announced a restructuring plan as it aims to shift its brand to a more premium position. The company is implementing an 18-month turnaround plan and has seen a decline in market share, with some investors shorting UAA.