Under Armour revenues down but margins improve after 'strategic reset'

US sportswear brand Under Armour saw revenue decline 9% to $5.2 billion (£3.9 billion) for the full-year ending 31 March 2025.

However, gross margin increased 180 basis points to 47.9%, primarily due to supply chain benefits, including reduced freight and product costs, as well as a decrease in direct-to-consumer discounting.

Kevin Plank, President and CEO at Under Armour, said: "One year into our strategic reset, we're laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth.

"Our fourth quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand."

In the full year, North American revenue for the Baltimore-based company decreased 11% to $3.1 billion (£2.3 billion), while international revenue fell 6% to $2.1 billion (£1.5 billion). Within the international business, revenue was flat in EMEA and declined 13% in Asia-Pacific and 6% in Latin America.

Wholesale revenue fell 8% and direct-to-consumer revenue declined 11%. Revenue from owned and operated stores decreased 2%, while e-commerce revenue dropped 23% "due to planned reductions in promotional activities", which accounted for 35% of the total direct-to-consumer business for the year.

By category, apparel revenue fell 9%. Meanwhile, footwear revenue declined 13% and accessories revenue rose 1% during the full-year.

Looking ahead to the new year’s trading, Plank added: "As we look toward fiscal 2026 amid a complex macroeconomic backdrop, our sharpened execution, alignment, and focus – bolstered by the move to a category-led operating model – equip us to navigate ongoing volatility with resilience.

"I'm confident in the agility we've built over the past year, and we are raising our bar of excellence at Under Armour."