Company: UAA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001336917-25-000136
Chunk: 3

Company: Under Armour, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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-term growth objectives depends, in part, on our ability to successfully execute strategic initiatives across key areas of the business, including within our North America region. In support of these long-term growth objectives, our digital strategy is designed to enhance consumer engagement and strengthen brand connectivity through multiple digital touchpoints.

Quarterly Results

During the three months ended June 30, 2025, challenging market conditions persisted, particularly in North America and Asia-Pacific, driven by lower consumer demand across both our wholesale and direct-to-consumer channels.

Financial highlights for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 include:

•Total net revenues decreased 4.2%. 

•Within our distribution channels, wholesale revenue decreased 4.6% and direct-to-consumer revenue decreased 3.5%. 

•Within our product categories, apparel revenue decreased 1.5%, footwear revenue decreased 14.3%, and accessories revenue increased 8.1%.

•Net revenue decreased 5.5% in North America, increased 9.6% in EMEA, decreased 10.1% in Asia-Pacific and decreased 15.3% in Latin America.

•Gross margin increased 70 basis points to 48.2%. 

•Selling, general and administrative expenses decreased 36.7%. 

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2025 Restructuring Plan

During Fiscal 2025, our Board of Directors approved the 2025 restructuring plan, designed to strengthen and support our financial and operational efficiencies. The 2025 restructuring plan is expected to range between $140 million to $160 million of pre-tax restructuring and related charges, including (i) up to $90 million in cash-related charges, consisting of approximately $27 million in employee severance and benefits costs and $63 million related to various transformational initiatives; and (ii) up to $70 million in non-cash charges, including approximately $7 million in employee severance and benefits costs and $63 million in facility, software, and other asset-related charges and impairments. The 2025 restructuring plan is expected to be substantially complete by the end of Fiscal 2026. 

Restructuring and related charges are included in our Corporate Other non-operating segment. The following table summarizes the costs recorded during the periods indicated, as well as the current estimate of remaining charges expected to be incurred in connection with the 2025 restructuring plan:

Three Months Ended June 30