Athletic Apparel Stock Under Armour, Inc., (NYSE: UA, UAA) Flies On First Quarter News

(MENAFN- Investor Ideas) Investorideas , a go-to platform for big investing ideas, including e-sports stocks reports on trading for Under Armour, Inc., (NYSE: UA , UAA), a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories.

The Company announced unaudited financial results for its first quarter fiscal 2025, which ended June 30, 2024.

Based on the news, the stock is trading up at $7.49, gaining $1.22 per share as of this report, giving investors a 19.46% win on volume of over 3.7 Million shares.

"We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations," said Under Armour President and CEO Kevin Plank. "Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity."

Plank continued, "With the strongest product organization we've had in many years and strengthened brand leadership, we're confident in our ability to elevate our design and innovation over the coming seasons and amplify our unique connection with athletes as their brand of choice."

First Quarter Fiscal 2025 Review

Revenue was down 10 percent to $1.2 billion (down 10 percent currency neutral).

North America revenue decreased 14 percent to $709 million, and international revenue decreased 2 percent to $473 million (down 2 percent currency neutral). In the international business, revenue in EMEA was flat (flat currency neutral), down 10 percent in Asia-Pacific (down 7 percent currency neutral), and up 16 percent in Latin America (up 12 percent currency neutral).

Wholesale revenue decreased 8 percent to $681 million, and direct-to-consumer revenue was down 12 percent to $480 million. Owned and operated store revenue declined 3 percent. Because of planned decreases in promotional activities, eCommerce revenue decreased 25 percent, representing 34 percent of the total direct-to-consumer business for the quarter.

Apparel revenue decreased 8 percent to $758 million, footwear revenue was down 15 percent to $310 million, and accessories revenue was down 5 percent to $93 million.

Gross margin increased 110 basis points to 47.5 percent, driven primarily by lower levels of discounting in the direct-to-consumer business and lower product costs. This was partially offset by unfavorable foreign currency impacts, channel and regional mix, and headwinds due to the timing of prior year supply chain benefits.

Due to a litigation reserve, selling, general, and administrative expenses were up 42 percent to $837 million. Adjusted selling, general, and administrative expenses were down 6 percent to $555 million, which excludes $274 million of litigation reserve expense, net of a related $60 million insurance receivable, and approximately $9 million of transformation expenses related to our Fiscal 25 restructuring program.

Restructuring charges were $25 million.

Operating loss was $300 million. Excluding transformation expenses and other charges totaling $308 million, adjusted operating income was $8 million.

Net loss was $305 million. Adjusted net income was $4 million.

Diluted loss per share was $0.70. Adjusted diluted earnings per share was $0.01.

Inventory was down 15 percent to $1.1 billion.

At the end of the quarter, cash and cash equivalents were $885 million, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.

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