Company: UAA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001336917-25-000198
Chunk: 129

Company: Under Armour, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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 six months ended September 30, 2024: $20.8 million and $38.3 million, respectively).

Gross profit decreased by $65.5 million to $630.6 million during three months ended September 30, 2025, as compared to $696.1 million during three months ended September 30, 2024. Gross profit as a percentage of net revenues, or gross margin, decreased to 47.3% from 49.8%. This decrease in gross margin of approximately 250 basis points was primarily driven by unfavorable impacts of 275 basis points from supply chain, primarily due to the impact of tariffs, and 100 basis points from channel and regional mix. These were partially offset by favorable impacts of 50 basis points from changes in foreign currency, 50 basis points from pricing benefits and 25 basis points from product mix.

Gross profit decreased by $81.7 million to $1.2 billion during six months ended September 30, 2025, as compared to $1.3 billion during six months ended September 30, 2024. Gross profit as a percentage of net revenues, or gross margin, decreased to 47.7% from 48.7%. This decrease in gross margin of approximately 100 basis points was primarily driven by unfavorable impacts of 160 basis points from supply chain, including the impact of tariffs, and 65 basis points from channel and regional mix. These were partially offset by favorable impacts of 60 basis points from pricing benefits, 30 basis points from changes in foreign currency and 25 basis points from product mix.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses consist of costs related to marketing and advertising, selling, product innovation and supply chain, and corporate services. We consolidate our selling, general and administrative expenses into two primary categories: "marketing and advertising" and "other." The other category is the sum of our selling, product innovation and supply chain, and corporate services categories. The marketing and 

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advertising category consists primarily of sports and brand marketing, media, and retail presentation. Sports and brand marketing includes professional, club and collegiate sponsorship agreements, individual athlete and influencer agreements, and providing and selling products directly to teams and individual athletes. Media includes digital, broadcast, and print media outlets, including social and mobile media. Retail presentation includes sales displays and concept shops and depreciation expense specific to our in-store fixture programs. Our marketing and advertising costs are an important driver of our growth