Company: UAA
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001336917-25-000016
Chunk: 165

Company: Under Armour, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 165
---
 and our direct-to-consumer channel. Within our direct-to-consumer channel, net revenues decreased in both e-commerce and owned and operated retail stores. Net revenues in our Latin America region were also negatively impacted by changes in foreign exchange rates.

•Net revenues in our Corporate Other non-operating segment decreased by $5.4 million to $(0.6) million from $4.8 million. This was primarily driven by lower foreign currency hedge gains related to revenues generated by entities within our operating segments.

39

Operating Income (Loss)

Three Months Ended December 31,(In thousands)20242023Change ($)Change (%)North America$164,068 $166,256 $(2,188)(1.3)%EMEA42,110 49,133 (7,023)(14.3)%Asia-Pacific14,009 16,014 (2,005)(12.5)%Latin America14,186 13,367 819 6.1 %Corporate Other (1)(220,864)(173,361)(47,503)(27.4)%Total operating income (loss)$13,509 $71,409 $(57,900)(81.1)%

(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 decrease in total operating income for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, was primarily driven by the following:

•Operating income in our North America region decreased by $2.2 million to $164.1 million from $166.3 million. 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, partially offset by lower product input and freight costs.

•Operating income in our EMEA region decreased by $7.0 million to $42.1 million from $49.1 million. This was primarily due to higher marketing-related expenses, partially offset by an increase in gross profit, which was driven by higher revenues as discussed above.

•Operating income in our Asia-Pacific region decreased by $2.0 million to $14.0 million from $16.0 million. This was primarily due to a decrease in gross profit driven by lower net revenues