Under Armour, Inc.
Other securities:
UAA
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Throughout this Annual Report on Form 10-K: (i) the term "Fiscal 2027" means our fiscal year beginning on April 1, 2026 and ending March 31, 2027; (ii) the term "Fiscal 2026" means our fiscal year beginning on April 1, 2025 and ended March 31, 2026; (iii) the term "Fiscal 2025" means our fiscal year beginning on April 1, 2024 and ended March 31, 2025; and (iv) the term "Fiscal 2024" means our fiscal year beginning on April 1, 2023 and ended March 31, 2024. Our Consolidated Financial Statements are presented in U.S. dollars. As used in this report, the terms "we," "our," "us," "Under Armour" and the "Company" refer to Under Armour, Inc. and its subsidiaries unless the context indicates otherwise.
ITEM 1. BUSINESS
General
Our principal business activities are the design, development, marketing and global distribution of branded performance apparel, footwear and accessories for men, women and youth. Our performance products are engineered with performance-driven materials and technologies, spanning a wide range of designs and styles for use in diverse climates. Our products are worn by athletes at all levels, from youth to professional, across multiple sports worldwide as well as by consumers who embrace active and performance-oriented lifestyles.
We generate net revenues from the sale of our products to national, regional, independent and specialty retailers and distributors worldwide. We also generate net revenues through our direct-to-consumer channel, which includes our owned Brand and Factory House stores and e-commerce platforms. We are focused on driving sustainable long-term growth and profitability through increased demand for our core product categories, continued expansion of our direct-to-consumer capabilities and strategic development of our global wholesale network.
Our strategic priorities are focused on elevating brand positioning, simplifying and scaling our operating model, accelerating innovation and enhancing global go‑to‑market execution. Execution of these priorities depends, in part, on our ability to deliver against strategic initiatives across key areas of the business, including North America, our largest market. Our digital strategy is designed to enhance consumer engagement, strengthen brand loyalty and enable omnichannel experiences across multiple digital touchpoints.
We were incorporated as a Maryland corporation in 1996. We have registered trademarks around the globe, including UNDER ARMOUR®, HEATGEAR®, COLDGEAR®, HOVR® and the Under Armour UA Logo ®, and continue to expand our intellectual property footprint worldwide. This Annual Report on Form 10-K also contains additional trademarks and trade names of our Company and our subsidiaries. All trademarks and trade names appearing in this Annual Report on Form 10-K are the property of their respective holders.
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Products
Our product offerings include apparel, footwear and accessories for men, women and youth, at a range of price points. They are designed to provide consumers with performance benefits that we believe are superior to non-performance-oriented athletic products. While our products are primarily designed for athletic and active use, many can also be used for everyday activities and casual wear.
In Fiscal 2026, sales of apparel, footwear and accessories represented approximately 68%, 22% and 8% of net revenues, respectively, while licensing arrangements represented approximately 2% of net revenues. Refer to Note 10 to the Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report on Form 10-K, for net revenues by product category.
Apparel
Our apparel is offered in a variety of styles and fits to enhance comfort and mobility, support active movement, regulate body temperature and improve performance regardless of weather conditions. Our apparel is engineered to replace non-performance fabrics in athletics and fitness applications with innovation and technologies designed and merchandised with various techniques and styles. Our apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). We aim to make athletes better and to innovate our technical apparel products to provide performance benefits, such as creating breathable warmth, helping the body stay cool and dry in hotter-than-normal conditions; harnessing the body's energy to help fight fatigue; adapting to each athlete's unique body shape to improve fit and comfort and prevent slippage; and providing protection against rain while maintaining breathability.
These types of innovations and technologies, embedded in many of our apparel products, include: COLDGEAR®, COLDGEAR INFRARED®, HEATGEAR®, UA Iso-Chill™, UA RUSH™, UA SMARTFORM™ and UA STORM™.
Footwear
Footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Our footwear is built with the mindset of making athletes better through differentiated and industry leading cushioning technologies such as Charged Cushioning®, UA Flow™, HOVR® and UA Micro G®. These cushioning platforms provide athletes with plush underfoot and improved ground feel, enhanced responsiveness and lightweight solutions. We also incorporate advanced materials and innovative consumer-centric constructions to enhance performance.
Accessories
Accessories primarily includes athletic performance gloves, bags, headwear and socks. Some of our accessories include the technologies mentioned above and are designed with advanced fabrications to provide the same level of performance as our other products.
License
We have agreements with licensees to develop certain Under Armour apparel, footwear, accessories and equipment. To maintain consistent brand quality, performance and compliance standards, our product, marketing, sales and quality assurance teams are involved in all steps of the design and go-to-market process. During Fiscal 2026, our licensees offered collegiate apparel and accessories, baby and youth apparel, team uniforms, socks, underwear, lunch boxes, coolers, water bottles, eyewear and other specific hard goods equipment and protective apparel that feature performance advantages and functionality like our other product offerings.
Marketing and Promotion
We currently focus on marketing our products to consumers primarily for use in athletics, fitness and training activities, as well as casual use through sportswear products, emphasizing our ability to support the needs of our athletes throughout all moments of their day. We seek to drive consumer demand by building brand awareness that our products deliver advantages to help athletes perform better.
Our marketing strategy centers on athletes and teams across multiple levels of competition as well as brand ambassadors and influencers. We provide and sell our products to high school, collegiate and professional level athletes and organizations. We execute this strategy through outfitting agreements; professional, club and collegiate sponsorships; individual athlete and influencer partnerships; and by providing and selling our products directly to teams and individual athletes. We also invest at the grassroots level through sponsorship of combines, camps,
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clinics and youth sports programs across a variety of sports. These initiatives expand our presence within the broader athletic community and aim to establish early brand engagement with emerging athletes.
We are the official outfitter of teams in several high-profile collegiate conferences and professional sport organizations, supporting the athletes on and off the field. For example, we are an official supplier of footwear and gloves to the National Football League ("NFL"). We sponsor and sell our products to international sports teams, which helps drive brand awareness in various countries and regions worldwide. Further, we leverage our relationships with athletes, teams, leagues and youth experiences in our global and regional marketing and promotions.
We promote our products through a range of digital, broadcast and print media outlets. As part of our marketing strategy, we utilize social media and other digital platforms to enhance brand awareness, strengthen consumer engagement and support our direct to consumer initiatives. We also incorporate user‑generated content, including customer reviews, images, videos, and social media posts, across our digital platforms to provide consumer‑driven product validation and to help strengthen the connection between consumers and our brand.
Our retail marketing strategy is focused on increasing floor space dedicated to our products within our major wholesale accounts and elevating the presentation of our products within our Brand and Factory House retail stores. A key component of our strategy to secure prime floor space within our major wholesale accounts is the design of Under Armour point of sale displays and concept shops, which enhance our brand’s presentation by creating a shop-in-shop approach using dedicated space—including flooring, lighting, walls, displays and images—exclusively for our products through which we create an exciting environment for the consumer to experience and learn about our brand.
We offer customer loyalty programs in the United States and throughout parts of our Asia-Pacific region, including China, in which customers earn points based on purchases and other promotional activities that can be redeemed for discounts on future purchases or other rewards.
Sales and Distribution
We generate the majority of our sales through our wholesale and direct-to-consumer channels. In Fiscal 2026, sales through our wholesale and direct-to-consumer channels represented 57% and 41% of net revenues, respectively.
Our wholesale channel includes national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores in certain international markets, institutional athletic departments, leagues and teams. In various countries where we do not have direct sales operations, we sell our products to independent distributors or engage licensees to sell our products.
Our direct-to-consumer channel includes our global network of Brand and Factory House stores and e-commerce platforms. Factory House stores serve an important role in inventory management, as further discussed below, by allowing us to sell a portion of excess, discontinued and out-of-season products, while maintaining the pricing integrity of our brand throughout all our distribution channels. Consumers experience a premium expression of our brand through our Brand House stores while having broader access to our performance products. As of March 31, 2026, we had 443 Brand and Factory House stores, including 198 stores in North America and 245 stores in our international markets.
Our primary business operates in four geographic segments: (i) North America, comprising the United States and Canada, (ii) Europe, the Middle East and Africa ("EMEA"), (iii) Asia-Pacific, and (iv) Latin America. These geographic segments operate predominantly in one industry: developing, marketing and distributing branded performance apparel, footwear and accessories. Refer to Note 17 to the Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report on Form 10-K, for additional information about our net revenues by segment.
Corporate Other consists primarily of (i) general and administrative expenses not allocated to an operating segment, including expenses associated with centrally managed departments such as global marketing, global information technology, global supply chain and innovation, and other corporate support functions; (ii) restructuring and restructuring related charges, if any; (iii) certain foreign currency hedge gains and losses; and (iv) operating results related to our MapMyFitness digital platform, which was sold during the second quarter of Fiscal 2025.
Our North America segment accounted for approximately 58% of our net revenues for Fiscal 2026, while our EMEA, Asia-Pacific and Latin America segments combined represented approximately 43%. Net revenues
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generated from the sales of our products in the United States were $2.6 billion for Fiscal 2026. No single customer accounted for more than 10% of consolidated net revenues for Fiscal 2026.
North America
We sell our apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. In addition, we generate license revenues in North America from our licensees' sales of collegiate apparel and accessories, as well as other licensed products.
We distribute the majority of our products to North American wholesale customers, as well as to our own Brand and Factory House retail stores and e-commerce channels, from distribution facilities that we lease and operate in Maryland and Tennessee. In Canada, we distribute our products through a third-party logistics provider. In some instances, we arrange for products to be shipped directly to customer-designated facilities from the factories that manufacture our products.
EMEA
We sell our apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, as well as through e-commerce platforms and Brand and Factory House stores we operate within Europe. Generally, our products are distributed to our retail customers and e-commerce consumers in Europe through third-party logistics providers in the Netherlands and the United Kingdom. In the Middle East and Africa, we sell our apparel, footwear and accessories through independent distributors.
Asia-Pacific
We sell our apparel, footwear and accessories products in China, South Korea, Australia, Singapore, Malaysia and Thailand through stores operated by our distribution and wholesale partners, as well as through e-commerce platforms and Brand and Factory House stores that we own and operate. We also sell our products to distributors in New Zealand, Taiwan, India and other countries in Southeast Asia where we do not have direct sales operations. We distribute our products in Asia-Pacific through third-party logistics providers based in Hong Kong, China, South Korea, Australia and Singapore.
We have a license agreement with and a non-controlling interest in a partner in Japan, which produces, markets and sells our branded apparel, footwear and accessories. Our branded products are sold in this market to large sporting goods retailers, independent specialty stores, professional sports teams and licensee-owned retail stores. We also have a license agreement with and a non-controlling interest in a partner in Australia, which sells custom branded teamwear through e-commerce platforms.
Latin America
We sell our apparel, footwear and accessories in Mexico through wholesale and direct-to-consumer channels. We distribute our products in Mexico through a third-party logistics provider. In certain countries where we do not have direct sales operations, we distribute our products through independent distributors, sourced primarily through our international distribution hubs in Panama and Hong Kong.
Product Design and Development
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help readers understand our results of operations and financial condition, and is provided as a supplement to, and should be read in conjunction with, our Condensed Consolidated Financial Statements and the accompanying Notes to our Condensed Consolidated Financial Statements under Part I, Item 1 of this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for Fiscal 2025, filed with the Securities Exchange Commission ("SEC") on May 22, 2025, under the captions "Business" and "Risk Factors."
This Quarterly Report on Form 10-Q, including this MD&A, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the U.S. Securities Act of 1933, as amended ("the Securities Act"), and is subject to the safe harbors created by those sections. All statements other than statements of historical facts are statements that could be deemed forward-looking statements. See "Forward Looking Statements."
Unless otherwise noted: (i) all dollar and percentage comparisons made herein refer to the three and nine months ended December 31, 2025 compared to the three and nine months ended December 31, 2024; and (ii) all tabular data is presented in thousands, except share and per share data.
Some of the statements contained in this Quarterly Report on Form 10-Q, including this MD&A, constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, our future financial condition or results of operations, our prospects and strategies for future growth, potential restructuring efforts, including the scope of these restructuring efforts and the amount of potential charges and costs, the timing of these measures and the anticipated benefits of our restructuring plans, expectations regarding promotional activities, freight, product cost pressures and foreign currency impacts, the impact of global economic conditions including changes in global trade policy and inflation on our results of operations, our liquidity and use of capital resources, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments and the impact of litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential" or the negative of these terms or other comparable terminology.
The forward-looking statements contained in this Quarterly Report on Form 10-Q reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to, those factors described in "Risk Factors" and MD&A herein and in our Annual Report on Form 10-K for Fiscal 2025. These factors include without limitation:
•changes in general economic or market conditions, including increasing inflation and potential impacts of changes and uncertainties related to government fiscal, monetary, tax and trade policies, that could affect overall consumer spending or our industry;
•the impact of global events beyond our control, including military conflicts and the effects of changes in the global trade environment, such as the imposition of new tariffs and countermeasures thereto, on our profitability;
•increased competition causing us to lose market share or reduce the prices of our products or to increase our marketing efforts significantly;
•fluctuations in the costs of raw materials and commodities we use in our products and our supply chain (including labor);
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•our ability to successfully execute our long-term strategies;
•our ability to effectively drive operational efficiency in our business;
•changes to the financial health of our customers;
•our ability to effectively develop and launch new, innovative and updated products;
•our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands;
•our ability to successfully execute any restructuring plans and realize their expected benefits;
•loss of key customers, suppliers or manufacturers;
•our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries;
•our ability to manage the increasingly complex operations of our global business;
•our ability to effectively market and maintain a positive brand image;
•our ability to successfully manage or realize expected results from significant transactions and investments;
•our ability to attract key talent and retain the services of our senior management and other key employees;
•our ability to effectively meet regulatory requirements and stakeholder expectations regarding sustainability and social matters;
•the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology;
•any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system;
•our ability to access capital and financing required to manage our business on terms acceptable to us;
•our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results;
•risks related to foreign currency exchange rate fluctuations;
•our ability to comply with existing trade and other regulations;
•risks related to data security or privacy breaches;
•the impact of global or regional public health emergencies on our industry and our business, financial condition and results of operations, including impacts on the global supply chain;
•our ability to remediate the material weakness discussed elsewhere in this Quarterly Report on Form 10-Q; and
•our potential exposure to and the financial impact of litigation and other proceedings, including those legal proceedings discussed elsewhere in this Quarterly Report on Form 10-Q.
The forward-looking statements contained in this Quarterly Report on Form 10-Q reflect our views and assumptions only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
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We are a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. Our brand's moisture-wicking fabrications are engineered in various designs and styles for wear in nearly every climate to provide a performance alternative to traditional products. Our products are sold worldwide and worn by athletes at all levels, from youth to professional, on playing fields around the globe and by consumers with active lifestyles.
We remain focused on driving premium brand-right growth and delivering improved profitability. We plan to continue to grow our business over the long term through increased sales of our apparel, footwear and accessories; growth in our direct-to-consumer sales channel; and expansion of our wholesale distribution. Achieving these long-term growth objectives depends, in part, on our ability to successfully execute strategic initiatives across key areas of the business, including within our North America region. In support of these long-term growth objectives, our digital strategy is designed to enhance consumer engagement and strengthen brand connectivity through multiple digital touchpoints.
Quarterly Results
During the three months ended December 31, 2025, challenging market conditions persisted, particularly in North America and Asia-Pacific, driven by lower consumer demand across both our wholesale and direct-to-consumer channels.
Financial highlights for the three months ended December 31, 2025 as compared to the three months ended December 31, 2024 include:
•Total net revenues decreased 5.2%.
•Within our distribution channels, wholesale revenue decreased 6.4% and direct-to-consumer revenue decreased 3.9%.
•Within our product categories, apparel revenue decreased 3.3%, footwear revenue decreased 12.0%, and accessories revenue decreased 2.5%.
•Net revenue decreased 10.3% in North America, increased 6.0% in EMEA, decreased 5.1% in Asia-Pacific and increased 19.7% in Latin America.
•Gross margin decreased 310 basis points to 44.4%.
•Selling, general and administrative expenses increased 4.2%.
2025 Restructuring Plan
During Fiscal 2025, our Board of Directors approved a restructuring plan designed to strengthen and support the Company's financial and operational efficiencies. On November 13, 2025, the Board of Directors approved a $95 million increase to the 2025 restructuring plan to include the separation of the Curry Brand as well as additional contract terminations, asset impairments, and employee severance and benefits costs, resulting in an updated restructuring plan of up to $255 million of pre-tax restructuring and related charges. The 2025 restructuring plan consists of up to $107 million in cash-related charges, including approximately $30 million in employee severance and benefits costs and $77 million related to various transformational initiatives; and up to $148 million in non-cash charges, including approximately $7 million in employee severance and benefits costs and $141 million in facility, software, and other asset-related charges and impairments. The 2025 restructuring plan is expected to be substantially complete by the end of Fiscal 2026.
Restructuring and related charges are excluded from our segment profitability measures. We report restructuring and related charges within Corporate Other, which is designed to provide increased transparency and comparability of operating segments' performance. The net charges recorded during the three and nine months ended December 31, 2025 and 2024 respectively, were primarily related to the North America operating segment.
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The following table summarizes the costs recorded during the periods indicated, as well as the current estimate of remaining charges expected to be incurred in connection with the 2025 restructuring plan:
| Three Months Ended December 31, | Nine Months Ended December 31, | Estimated Charges Remaining to be Incurred(1) | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| Costs recorded in restructuring charges: | |||||||||||||||||||||||||||
| Employee-related costs | $ | (143) | $ | 1,584 | $ | 8,485 | $ | 13,322 | |||||||||||||||||||
Facility-related costs(2) | 2,359 | 5,706 | 30,617 | 18,201 | |||||||||||||||||||||||
Other restructuring costs(3) | 72,764 | 6,655 | 80,612 | 10,720 | |||||||||||||||||||||||
| Total costs recorded in restructuring charges | $ | 74,980 | $ | 13,945 | $ | 119,714 | $ | 42,243 | $ | 17,317 | |||||||||||||||||
| Costs recorded in selling, general and administrative expenses: | |||||||||||||||||||||||||||
| Employee-related costs | $ | — | $ | — | $ | 719 | $ | 9,460 | |||||||||||||||||||
| Other transformation initiatives | 2,714 | 3,819 | 14,699 | 5,740 | |||||||||||||||||||||||
| Total costs recorded in selling, general and administrative expenses | $ | 2,714 | $ | 3,819 | $ | 15,418 | $ | 15,200 | $ | 13,389 | |||||||||||||||||
| Total restructuring and related charges | $ | 77,694 | $ | 17,764 | $ | 135,132 | $ | 57,443 | $ | 30,706 | |||||||||||||||||
(1) Estimated restructuring and related charges reflect the high-end of the total estimated charges expected to be incurred in connection with the 2025 restructuring plan.
(2) Facility-related costs for the nine months ended December 31, 2025 includes an impairment charge of $15.9 million relating to the previously disclosed decision to exit our distribution facility in Rialto, California.
(3) Other restructuring costs for the three and nine months ended December 31, 2025, respectively, includes $69.7 million of non-cash contract termination costs, primarily relating to the separation of the Curry Brand.
Restructuring charges and recoveries require us to make certain judgments and estimates regarding the amount and timing as to when these charges or recoveries occur. The estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate, as new or updated information becomes available.
Macroeconomic Factors and Other Global Events
We are actively monitoring the evolving global trade environment, including recent changes in global trade policy, and related effects on consumer discretionary spending. We continue to assess the implications for our business and are actively implementing mitigation strategies. However, we expect these changes will have a material impact on our Fiscal 2026 results of operations, including revenue, gross profit and operating income. Based on information that is currently available, we anticipate a negative impact of approximately $80 million to our cost of goods sold in Fiscal 2026 attributable to increased tariffs, which is expected to impact gross profit by approximately 160 basis points.
Other macroeconomic factors, such as inflationary pressures and fluctuations in foreign currency exchange rates, have and may continue to impact our business. We continue to monitor these factors and the potential impacts they may have on our financial results, including product input costs, freight costs and consumer discretionary spending and therefore consumer demand for our products. We also continue to monitor the broader impacts of conflicts around the world on the economy, including their effect on inflationary pressures and the price of oil globally.
See "Risk Factors—Economic and Industry Risks—Our business depends on consumer purchases of discretionary items, which can be negatively impacted during an economic downturn or periods of inflation. This could materially impact our sales, profitability, results of operations and financial condition"; "—Fluctuations in the cost of raw materials and commodities we use in our products and costs related to our supply chain could negatively affect our operating results"; "—Our financial results and ability to grow our business may be negatively impacted by global events beyond our control"; and "—Financial Risks—Our financial results could be adversely
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impacted by currency exchange rate fluctuations" included in Item 1A of our Annual Report on Form 10-K for Fiscal 2025.
The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues:
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,327,761 | 100.0 | % | $ | 1,401,039 | 100.0 | % | $ | 3,795,209 | 100.0 | % | $ | 3,983,727 | 100.0 | % | ||||||||||||||||||||||||||||||
| Cost of goods sold | 738,021 | 55.6 | % | 735,884 | 52.5 | % | 2,028,389 | 53.4 | % | 2,059,765 | 51.7 | % | ||||||||||||||||||||||||||||||||||
| Gross profit | 589,740 | 44.4 | % | 665,155 | 47.5 | % | 1,766,820 | 46.6 | % | 1,923,962 | 48.3 | % | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 664,540 | 50.0 | % | 637,701 | 45.5 | % | 1,776,517 | 46.8 | % | 1,994,858 | 50.1 | % | ||||||||||||||||||||||||||||||||||
| Restructuring charges | 74,980 | 5.6 | % | 13,945 | 1.0 | % | 119,714 | 3.2 | % | 42,243 | 1.1 | % | ||||||||||||||||||||||||||||||||||
| Income (loss) from operations | (149,780) | (11.3) | % | 13,509 | 1.0 | % | (129,411) | (3.4) | % | (113,139) | (2.8) | % | ||||||||||||||||||||||||||||||||||
| Interest income (expense), net | (8,892) | (0.7) | % | (3,391) | (0.2) | % | (21,548) | (0.6) | % | (2,794) | (0.1) | % | ||||||||||||||||||||||||||||||||||
| Other income (expense), net | (1,584) | (0.1) | % | (2,563) | (0.2) | % | (7,221) | (0.2) | % | (8,713) | (0.2) | % | ||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (160,256) | (12.1) | % | 7,555 | 0.5 | % | (158,180) | (4.2) | % | (124,646) | (3.1) | % | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 270,604 | 20.4 | % | 6,295 | 0.4 | % | 293,886 | 7.7 | % | 9,308 | 0.2 | % | ||||||||||||||||||||||||||||||||||
| Income (loss) from equity method investments | 33 | — | % | (26) | — | % | (187) | — | % | 144 | — | % | ||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (430,827) | (32.4) | % | $ | 1,234 | 0.1 | % | $ | (452,253) | (11.9) | % | $ | (133,810) | (3.4) | % | ||||||||||||||||||||||||||||||
Revenues
Net revenues consist of net sales and license revenues. Net sales consist of sales from apparel, footwear and accessories products. Our license revenues primarily consist of fees paid to us by licensees in exchange for the use of our trademarks on their products. The following tables summarize net revenues by product category and distribution channel for the periods indicated:
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Change ($) | Change (%) | 2025 | 2024 | Change ($) | Change (%) | ||||||||||||||||||||||||||||||||||||||||
| Net Revenues by Product Category: | |||||||||||||||||||||||||||||||||||||||||||||||
| Apparel | $ | 934,015 | $ | 966,068 | $ | (32,053) | (3.3) | % | $ | 2,617,090 | $ | 2,671,048 | $ | (53,958) | (2.0) | % | |||||||||||||||||||||||||||||||
| Footwear | 265,135 | 301,208 | (36,073) | (12.0) | % | 794,616 | 924,357 | (129,741) | (14.0) | % | |||||||||||||||||||||||||||||||||||||
| Accessories | 107,660 | 110,432 | (2,772) | (2.5) | % | 320,815 | 319,358 | 1,457 | 0.5 | % | |||||||||||||||||||||||||||||||||||||
| Net Sales | 1,306,810 | 1,377,708 | (70,898) | (5.1) | % | 3,732,521 | 3,914,763 | (182,242) | (4.7) | % | |||||||||||||||||||||||||||||||||||||
| License revenues | 27,155 | 23,904 | 3,251 | 13.6 | % | 80,501 | 70,371 | 10,130 | 14.4 | % | |||||||||||||||||||||||||||||||||||||
Corporate Other (1) | (6,204) | (573) | (5,631) | (982.7) | % | (17,813) | (1,407) | (16,406) | (1166.0) | % | |||||||||||||||||||||||||||||||||||||
| Total net revenues | $ | 1,327,761 | $ | 1,401,039 | $ | (73,278) | (5.2) | % | $ | 3,795,209 | $ | 3,983,727 | $ | (188,518) | (4.7) | % | |||||||||||||||||||||||||||||||
| Net Revenues by Distribution Channel: | |||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale | $ | 659,965 | $ | 704,760 | $ | (44,795) | (6.4) | % | $ | 2,084,065 | $ | 2,211,266 | $ | (127,201) | (5.8) | % | |||||||||||||||||||||||||||||||
| Direct-to-consumer | 646,845 | 672,948 | (26,103) | (3.9) | % | 1,648,456 | 1,703,497 | (55,041) | (3.2) | % | |||||||||||||||||||||||||||||||||||||
| Net Sales | 1,306,810 | 1,377,708 | (70,898) | (5.1) | % | 3,732,521 | 3,914,763 | (182,242) | (4.7) | % | |||||||||||||||||||||||||||||||||||||
| License revenues | 27,155 | 23,904 | 3,251 | 13.6 | % | 80,501 | 70,371 | 10,130 | 14.4 | % | |||||||||||||||||||||||||||||||||||||
Corporate Other (1) | (6,204) | (573) | (5,631) | (982.7) | % | (17,813) | (1,407) | (16,406) | (1166.0) | % | |||||||||||||||||||||||||||||||||||||
| Total net revenues | $ | 1,327,761 | $ | 1,401,039 | $ | (73,278) | (5.2) | % | $ | 3,795,209 | $ | 3,983,727 | $ | (188,518) | (4.7) | % | |||||||||||||||||||||||||||||||
(1) Corporate Other primarily includes foreign currency hedge gains and losses related to revenues generated by entities within our operating segments but managed through our central foreign exchange risk management program.
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Net Sales
Net sales decreased by $70.9 million, or 5.1%, to $1.3 billion during the three months ended December 31, 2025, from $1.4 billion during the three months ended December 31, 2024. Apparel decreased primarily due to lower average selling prices and lower unit sales. Footwear decreased primarily due to lower unit sales and lower average selling prices, partially offset by favorable channel mix. Accessories decreased primarily due to unfavorable channel mix, partially offset by higher unit sales. From a channel perspective, the decrease in net sales was due to a decrease in both wholesale and direct-to-consumer.
Net sales decreased by $182.2 million, or 4.7%, to $3.7 billion during the nine months ended December 31, 2025, from $3.9 billion during the nine months ended December 31, 2024. Apparel decreased primarily due to lower average selling prices and unfavorable channel mix, partially offset by higher unit sales. Footwear decreased primarily due to lower unit sales and lower average selling prices. Accessories increased primarily due to higher unit sales, partially offset by unfavorable channel mix. From a channel perspective, the decrease in net sales was due to a decrease in both wholesale and direct-to-consumer.
License Revenues
License revenues increased by $3.3 million or 13.6%, to $27.2 million during the three months ended December 31, 2025, from $23.9 million during the three months ended December 31, 2024. This was primarily due to higher revenues from our international licensing partners.
License revenues increased by $10.1 million or 14.4%, to $80.5 million during the nine months ended December 31, 2025, from $70.4 million during the nine months ended December 31, 2024. This was primarily due to higher revenues from our international licensing partners and our licensing partners in North America.
Gross Profit
Cost of goods sold consists primarily of product costs, tariffs, inbound freight and duty costs, outbound freight costs, handling costs to make products floor-ready to customer specifications, royalty payments to endorsers based on a predetermined percentage of sales of selected products and write downs for inventory obsolescence. In general, as a percentage of net revenues, we expect cost of goods sold associated with our apparel and accessories to be lower than that of our footwear. No cost of goods sold is associated with our license revenues.
We include outbound freight costs associated with shipping goods to customers as cost of goods sold; however, we include the majority of outbound handling costs as a component of selling, general and administrative expenses. As a result, our gross profit may not be comparable to that of other companies that include outbound handling costs in their cost of goods sold. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate our distribution facilities. These costs were $18.7 million and $58.6 million for the three and nine months ended December 31, 2025, respectively (three and nine months ended December 31, 2024: $20.4 million and $58.7 million, respectively).
Gross profit decreased by $75.4 million to $589.7 million during the three months ended December 31, 2025, as compared to $665.2 million during the three months ended December 31, 2024. Gross profit as a percentage of net revenues, or gross margin, decreased to 44.4% from 47.5%. This decrease in gross margin of approximately 310 basis points was primarily driven by unfavorable impacts of 180 basis points from supply chain, including 200 basis points from tariff impacts,140 basis points from pricing due to a more promotional environment in North America and 40 basis points from channel and regional mix. These were partially offset by favorable impacts of 30 basis points from changes in foreign currency and 20 basis points from product mix.
Gross profit decreased by $157.1 million to $1.8 billion during the nine months ended December 31, 2025, as compared to $1.9 billion during the nine months ended December 31, 2024. Gross profit as a percentage of net revenues, or gross margin, decreased to 46.6% from 48.3%. This decrease in gross margin of approximately 170 basis points was primarily driven by unfavorable impacts of 110 basis points from supply chain, including 130 basis points from tariff impacts, 60 basis points from pricing a more promotional environment in North America and 55 basis points from channel and regional mix. These were partially offset by favorable impacts of 30 basis points from changes in foreign currency and 25 basis points from product mix.
Selling, General and Administrative Expenses
Our selling, general and administrative expenses consist of costs related to marketing and advertising, selling, product innovation and supply chain, and corporate services. We consolidate our selling, general and administrative expenses into two primary categories: "marketing and advertising" and "other." The marketing and advertising category consists primarily of sports and brand marketing, media and retail presentation. Sports and
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brand marketing includes professional, club and collegiate sponsorship agreements, individual athlete and influencer agreements, and providing and selling products directly to teams and individual athletes. Media includes digital, broadcast, and print media outlets, including social and mobile media. Retail presentation includes sales displays and concept shops and depreciation expense specific to our in-store fixture programs. Our marketing and advertising costs are an important driver of our growth. The other category is the sum of our selling, product innovation and supply chain, and corporate services categories.
Next expected filings
- ~2026-08-08 10-Q expected by 2026-08-09 (in 80 days)
- ~2026-11-06 10-Q expected by 2026-11-07 (in 170 days)
- ~2027-02-06 10-Q expected by 2027-02-07 (in 262 days)
- ~2027-05-20 10-K expected by 2027-05-25 (in 365 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-19 10-K Annual Report
- 2026-05-12 8-K Earnings Release; Costs Associated with Exit; Financial Statements and Exhibits
- 2026-02-12 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-06 10-Q Quarterly Report
- 2026-02-06 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-15 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-11-14 8-K Costs Associated with Exit; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-11-06 10-Q Quarterly Report
- 2025-11-06 8-K Earnings Release; Officer/Director Change; Other Events; Financial Statements and Exhibits
- 2025-08-19 8-K Material Agreement Terminated
- 2025-08-08 10-Q Quarterly Report
- 2025-08-08 8-K Earnings Release; Financial Statements and Exhibits
- 2025-06-23 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-06-16 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-06-12 8-K Other Events; Financial Statements and Exhibits