Company: UAA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001336917-25-000136
Chunk: 12

Company: Under Armour, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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728)$303,051 101.1 %

(1) Corporate Other primarily includes foreign currency hedge gains and losses related to revenues generated by entities within our operating segments but managed through our central foreign exchange risk management program. Corporate Other also includes expenses related to our central supporting functions.

The increase in total operating income for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily driven by the following:

•Operating income in our North America region decreased by $26.5 million, or 17.9%. This was primarily due to a decrease in gross profit, higher marketing and advertising costs and higher selling and distribution expenses. These were partially offset by lower facility-related expenses. The decrease in gross profit was primarily driven by lower net revenues as discussed above, partially offset by lower product input and freight costs. 

•Operating income in our EMEA region increased by $19.2 million, or 93.8%. This was primarily due to lower marketing and advertising costs, lower facility-related expenses and an increase in gross profit. These were partially offset by higher salaries expense and higher selling and distribution costs. The increase in gross profit was driven by higher net revenues, as discussed above, partially offset by higher product input costs. 

•Operating income in our Asia-Pacific region increased by $4.8 million, or 48.0%. This was primarily due to lower marketing and advertising costs, lower selling and distribution expenses and an increase in gross profit. The increase in gross profit was primarily driven by lower product costs, partially offset by lower net revenues as discussed above.

•Operating income in our Latin America region decreased by $8.6 million, or 56.5%. This was primarily due to a decrease in gross profit, partially offset by lower selling and distribution expenses. The decrease in gross profit was primarily driven by lower net revenues as discussed above.

•Operating loss in our Corporate Other non-operating segment decreased by $314.1 million, or 63.7%. This was primarily driven by higher net litigation expense in the prior year related to the settlement of the Company's Consolidated Securities Action litigation (refer to Note 10 of the Consolidated Financial Statements in Part II, Item 8 of the Company's Annual Report on Form 10-K for Fiscal 2025).

LIQUIDITY AND CAPITAL RESOURCES

Our cash requirements have principally been for working capital and capital expenditures. We fund our working capital, primarily inventory, and capital investments from cash