Under Armour delivered weaker third-quarter results as slowing consumer demand and rising trade-related costs continued to weigh on its business. The company reported a year-on-year decline in revenue and expanded its full-year loss forecast, reflecting mounting operational and market challenges.
For the three months ended 31 December 2025, the US-based sportswear group generated net revenue of $1.33 billion, representing a 5% decline compared with the same period last year. On a constant-currency basis, the decrease stood at 6%, underscoring persistent headwinds in key markets. These figures highlight ongoing pressure on Under Armour financial performance as the company navigates an uncertain retail environment.
During the quarter, the company recorded a net loss of $431 million. This result was heavily influenced by a $247 million valuation allowance linked to deferred tax assets in the US. Excluding exceptional items, adjusted net income reached $37 million.
Wholesale operations saw sales fall by 6% to $660 million, while direct-to-consumer revenue declined 4% to $647 million. Online channels were particularly affected, posting a 7% decrease.
By product category, apparel sales slipped 3% to $934 million. Footwear experienced a sharper contraction, sliding 12% to $265 million, while accessories revenue dropped 3% to $108 million.
Profitability also came under strain. Gross margin narrowed by 310 basis points to 44.4%, largely due to higher import tariffs, pricing pressures, and an unfavourable product mix.
Operating expenses increased during the quarter, with selling, general, and administrative costs rising 4% to $665 million. This was mainly driven by a $99 million litigation provision and $3 million in restructuring-related transformation expenses. On an adjusted basis, however, SG&A expenses declined by 7%.
Restructuring charges totalling $75 million contributed to an operating loss of $150 million. Excluding these items, adjusted operating income stood at $26 million.
The company reported a diluted loss per share of $1.01, while adjusted earnings per share were $0.09.
Regional performance reflected uneven demand conditions. Revenue in North America fell sharply by 10% to $757 million. International operations provided partial support, with overall growth of 3%. The EMEA region expanded by 6%, and Latin America recorded a strong 20% increase. In contrast, Asia Pacific revenue declined by 5%.
Inventory levels were reduced by 2% to $1.1 billion as the company focused on tighter stock management. At quarter-end, Under Armour held $465 million in cash, along with $600 million in restricted investments earmarked for upcoming debt obligations.
For the nine-month period ending 31 December 2025, net revenue declined to $3.79 billion from $3.98 billion in the corresponding period of the previous year. Over the same timeframe, SG&A expenses fell to $1.77 billion, compared with $1.99 billion in 2024.
Net losses widened substantially, reaching $452.3 million in 2025, up from $133.8 million a year earlier. This deterioration reflects continued pressure on margins and restructuring efforts.
Looking ahead, the company has revised its full-year outlook downward. Under Armour now expects annual revenue to decline by 4% and projects an operating loss of $154 million, compared with its earlier forecast of a $56 million to $71 million loss.
Adjusted operating income is expected to reach approximately $110 million. Diluted loss per share is forecast to range between $1.24 and $1.25, signalling that challenges to Under Armour financial performance are likely to persist in the near term.
