The sportswear maker reported a 3% annual revenue decline to $1.1bn, citing softer North American and Asia-Pacific sales.
Under Armour lowered its full-year revenue outlook after reporting a 3% year-on-year drop in quarterly sales to $1.1bn. North America revenue fell 9%, while Asia-Pacific declined 7%, offset partially by a 5% rise in international sales, led by EMEA and Latin America growth.
Gross margin expanded 590 basis points to 54.1%, driven by tariff refunds under the IEEPA, which countered foreign exchange and pricing pressures. Operating income reached $47m, or $52m excluding one-off charges, while net income stood at $1m. Inventory levels decreased 3% to $1.1bn.
CEO Kevin Plank acknowledged a challenging demand environment but emphasized progress in refocusing the business. The company held $396m in cash and $200m in borrowings under its credit facility at quarter-end.