US-based sportswear group Under Armour posted a third-quarter revenue fall and deepened its full-year loss outlook, blaming weaker North American demand and higher US tariffs.
Net revenue for the three months to 31 December 2025 slipped 5% year-on-year to $1.33bn, or 6% lower on a currency-neutral basis.
The group reported a quarterly net loss of $431m, reflecting a $247m valuation allowance tied to US federal deferred tax assets.
Adjusted net income reached $37m.
Wholesale sales declined 6% to $660m, while direct-to-consumer revenue dropped 4% to $647m, including a 7% fall in online sales.
Apparel revenue eased 3% to $934m, footwear slid 12% to $265m, and accessories were down 3% to $108m.
Gross margin contracted by 310 basis points to 44.4%, driven mainly by tariffs alongside pricing pressures and an unfavourable sales mix.
Selling, general and administrative (SG&A) costs rose 4% to $665m due largely to a $99m litigation reserve and $3m in restructuring-related transformation expenses.
On an adjusted basis, SG&A fell 7%.
Restructuring charges of $75m contributed to an operating loss of $150m, though adjusted operating income stood at $26m.
Diluted loss per share came in at $1.01 while adjusted earnings per share were $0.09.
North America revenue dropped 10% to $757m, offset partly by a 3% rise internationally, with EMEA up 6% and Latin America climbing 20%. Meanwhile, revenue for the Asia Pacific declined by 5%.
Inventory edged down 2% to $1.1bn, and the company ended the quarter with $465m in cash plus $600m in restricted investments for upcoming debt repayments.
For the nine months ended 31 December 2025, net revenues were $3.79bn, down from $3.98bn for the nine months ended 31 December 2024.
SG&A expenses decreased to $1.77bn in 2025 from $1.99bn in 2024.
Net loss widened significantly to $452.3m in 2025, compared with a net loss of $133.8m in 2024.
For the full year, Under Armour now expects revenue to drop 4% and forecasts an operating loss of $154m, compared with earlier guidance of a $56m to $71m loss.
Adjusted operating income is projected near $110m, with diluted loss per share between $1.24 and $1.25.
