Under Armour has reported a 9 per cent drop in revenue to US$5.2 billion (A$8 billion) for the year ending March, as it works through a restructuring to reposition its brand and improve profitability.
The company posted a net loss of $201 million (A$309 million).
“By elevating products and storytelling, tightening distribution, and refining our operating model, we are reigniting brand relevance and positioning the business for sustainable, profitable growth,” said Kevin Plank, president and CEO of Under Armour.
Wholesale revenue declined 8 per cent to $3 billion, while DTC revenue fell 11 per cent to $2.1 billion. E-commerce sales were down 23 per cent as the brand reduced promotional activity, now representing 35 per cent of DTC revenue.
Regionally, North America posted an 11 per cent sales decline, while international markets are down by 6 per cent, driven by a 13 per cent fall in Asia Pacific and 6 per cent in Latin America. Revenue in EMEA remained flat.
By category, apparel sales dropped 9 per cent to $3.5 billion, and footwear fell 13 per cent to $1.2 billion. Accessories rose 1 per cent to $411 million.
Despite the decline in sales, gross margin improved 180 basis points to 47.9 per cent, helped by lower product and freight costs and reduced discounting.
As part of its multi-year turnaround plan, Under Armour last year launched a restructuring effort expected to cost between $140 million and $160 million.
So far, it has recorded $89 million in related charges, with additional expenses expected in the next fiscal year.
“As we look toward fiscal 2026 amid a complex macroeconomic backdrop, our sharpened execution, alignment, and focus equip us to navigate ongoing volatility with resilience,” Plank concluded.
