What's Happening?
Under Armour has reported a significant widening of its loss outlook in its latest Q3 results, with sales continuing to decline. The company recorded an operating loss of £110m ($150m) for the 12 weeks
ending December 31, 2025. Revenues dropped by 5% year-on-year to £980m ($1.33bn), and the net loss was £316m ($431m). The North American market saw a 10% decline in sales, while direct-to-consumer revenue fell by 4%. Despite these challenges, international revenue increased by 3%. Under Armour's restructuring plan, initiated in May 2024, is expected to cost up to £187m ($255m) and aims to improve financial and operational efficiency.
Why It's Important?
Under Armour's financial struggles highlight the challenges faced by the sportswear industry, particularly in North America. The company's declining sales and increased losses underscore the competitive pressures and changing consumer preferences in the market. The restructuring plan is crucial for Under Armour to regain its footing and improve its financial health. The company's ability to stabilize its North American operations and capitalize on international growth opportunities will be key to its long-term success. The outcome of these efforts will have significant implications for stakeholders, including investors, employees, and retail partners.
What's Next?
Under Armour is focusing on stabilizing its North American operations and building on its international growth. The company expects sales to fall by approximately 4% for the remainder of fiscal 2026. It plans to continue its restructuring efforts, which include cost-cutting measures and strategic investments in product development and marketing. The company's leadership is optimistic about the progress being made and aims to reignite brand momentum through better products and a more disciplined market presence.
