Company: UAA
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001336917-25-000016
Chunk: 152

Company: Under Armour, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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 direct-to-consumer businesses. Additionally, our digital strategy is focused on supporting these long-term objectives, emphasizing connection and engagement with our consumers through multiple digital touchpoints.

Quarterly Results

During the three months ended December 31, 2024, we continued to face a challenging environment, particularly in North America, that included lower demand in our wholesale channel, in addition to the impacts of proactive strategies to reduce discounting and promotional activity in our direct-to-consumer channel, particularly in e-commerce. We also faced a challenging environment in Asia-Pacific region.

Financial highlights for the three months ended December 31, 2024 as compared to the three months ended December 31, 2023 include:

•Total net revenues decreased 5.7%. 

•Within our channels, wholesale revenue decreased 1.0% and direct-to-consumer revenue decreased 9.1%. 

•Within our product categories, apparel revenue decreased 5.0%, footwear revenue decreased 9.0%, and accessories revenue increased 5.7%.

•Net revenue decreased 7.8% in North America, increased 4.9% in EMEA, decreased 5.1% in Asia-Pacific and decreased 15.5% in Latin America.

•Gross margin increased 240 basis points to 47.5%. 

•Selling, general and administrative expenses increased 6.4%. 

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2025 Restructuring Plan

On May 15, 2024, our Board of Directors approved a restructuring plan (the "2025 restructuring plan") designed to strengthen and support our financial and operational efficiencies. On September 5, 2024, our Board of Directors approved a $70 million increase to the 2025 restructuring plan, resulting in an updated restructuring plan of approximately $140 million to $160 million of pre-tax restructuring and related charges to be incurred during Fiscal 2025 and the fiscal year ending March 31, 2026 ("Fiscal 2026"), including:

•Up to $75 million in cash-related charges, consisting of approximately $30 million in employee severance and benefits costs and $45 million related to various transformational initiatives; and

•Up to $85 million in non-cash charges, including approximately $7 million in employee severance and benefits costs and $78 million in facility, software, and other asset-related charges and impairments. 

Restructuring and related charges are included in our Corporate Other segment. The costs recorded during the three and nine months ended December