Under Armour sought to project strength despite disappointing results, saying Tuesday that it has reset its sports focus following the end of its long-running partnership with Steph Curry and that its turnaround is already underway.
The company’s fourth quarter revenue dipped by 1% compared to the same period a year ago and the retailer posted an operating loss of $34 million, it said Tuesday. Under Armour insists it’s in the midst of a turnaround with an eye on moving back to growth in fiscal 2028.
It’s been tough times for Under Armour, which is undergoing a significant restructuring that includes a refocus with regard to sports. In November, the company broke up with Steph Curry despite having signed the NBA star to a “long-term contract extension” just two years ago, and last month it lost four-time WNBA All-Star Kelsey Plum.
Although the Under Armour roster still features WNBA players Marina Mabrey, Diamond Miller, Laeticia Amihere, and Nika Mühl, NBA guard De’Aaron Fox, and MLB star Bryce Harper, during Tuesday’s earnings call the company signaled a clear shift in sports focus toward training, running, and sportswear.
“Our sports focus is limited and we’ve culled things down,” Under Armour president and CEO Kevin Plank said.
“This is not about stepping back,” he said. “It’s about building a more focused, disciplined, and premium Under Armour.”
Plank said the company is focusing on being “more deliberate, more intentional” with every dollar spent. He referenced Sharon Lokedi, an Under Armour-endorsed athlete who last month won her second consecutive Boston Marathon. “Sharon Lokedi’s win is something which is defining for the brand,” Plank said.
That may be true, but analysts and the stock market are currently defining the brand by its performance, which has not been up to par for some time now. For the full fiscal year 2025, Under Armour revenue fell 4% with an operating loss of $163 million. As of early Tuesday afternoon, shares were down more than 18%.
Analysts from Telsey Group noted the company “had a bit more challenging” fiscal fourth quarter than expected, while analysts at Guggenheim noted the company had missed on its projected gross margin. (Under Armour’s gross margin declined by 470 basis posts, which the company attributed to tariffs and higher product costs, among other factors.)
In addition to tariffs, Under Armour executives said during the earnings call that its recent difficulties stem in part from supply chain disruptions caused by the war in Iran, as well as an overall turbulent retail environment.
For the last two years, Under Armour has “rebuilt important parts of the company with greater clarity, discipline and accountability,” Plank said. As part of that rebuild, the company in November announced the hiring of Reza Taleghani as EVP and CFO, longtime EVP and CFO of Samsonite Group, who officially started in those roles in February.
Plank expressed confidence while admitting it will be a long road to recovery. Under Armour expects to stabilize revenue in fiscal 2027, with “stronger profitability and growth” expected by fiscal 2028. In addition to the “nearly half a billion dollars” it has at its disposal for marketing purposes, Plank noted the business is “aligned to deploy and spend” another $30 million. He said he knows that will be “scrutinized,” but “this isn’t just us throwing money at something.”
The idea is to get back to what Under Armour is best at in marketing products. “Our voice is overwhelmingly storytelling, and I don’t feel like we’ve been living up to that,” Plank said.
