Under Armour Appoints Three New Members to Its Board of Directors

Under Armour announced the appointment of Dawn N. Fitzpatrick, Eugene D. Smith, and Robert J. Sweeney to its Board of Directors, effective immediately. Board Chair Mohamed A. El-Erian highlighted the trio’s strategic value, citing their financial, operational, and intercollegiate sports expertise.

Dawn Fitzpatrick is the CEO and CIO of Soros Fund Management and formerly held senior roles at UBS. She also serves on the boards of Barclays and the Federal Reserve Bank of Dallas.

Gene Smith recently retired as Athletic Director at Ohio State University after nearly two decades. He is known for leadership roles in NCAA committees and is a former football player and coach at Notre Dame.

Rob Sweeney is President of Sycamore Partners and previously served as a partner at Goldman Sachs. He advised Under Armour on its 2005 IPO and is a former U.S. Navy officer.

The new appointments bring the total number of Under Armour board members to 12.

Under Armour, Inc. (NYSE: UAA, UA) reported its unaudited financial results for the third quarter of fiscal year 2025, which ended on December 31, 2024. The company highlighted a focus on brand strength, product strategy, and a shift to a category-led operating model as key drivers of its transformation.

Key financial results for the third quarter:
- Revenue decreased 6% to $1.4 billion (down 6% currency neutral).
- North America revenue decreased by 8% to $844 million.
- International revenue decreased 1% to $558 million (down 2% currency neutral), with notable regional variations:
- EMEA revenue up 5% (up 3% currency neutral).
- Asia-Pacific revenue down 5% (down 6% currency neutral).
- Latin America revenue down 16% (down 9% currency neutral).
- Wholesale revenue decreased 1% to $705 million.
- Direct-to-consumer revenue decreased by 9% to $673 million, with a 20% decline in eCommerce revenue due to planned decreases in promotional activities. eCommerce represented 39% of direct-to-consumer business for the quarter.
- Apparel revenue decreased by 5% to $966 million, footwear revenue declined by 9% to $301 million, and accessories revenue increased by 6% to $110 million.

Other financial metrics:
- Gross margin increased 240 basis points to 47.5%, driven by less discounting, lower product and freight costs, and favorable foreign currency impacts.
- Selling, general, and administrative (SG&A) expenses increased 6% to $638 million, primarily due to higher marketing investments. Adjusted SG&A expenses increased 5% to $606 million.
- Restructuring charges amounted to $14 million.
- Operating income was $14 million, and adjusted operating income was $60 million after excluding impairment, transformation, and restructuring charges.
- Net income was $1 million, while adjusted net income was $35 million.
- Diluted EPS was $0.00, with adjusted diluted EPS of $0.08.

Inventory remained flat at $1.1 billion. As of December 31, 2024, cash and cash equivalents totaled $727 million, with no borrowings under the company's $1.1 billion revolving credit facility.

Share repurchases:
- Under Armour repurchased $25 million of its Class C common stock in the third quarter, retiring 2.8 million shares.
- A total of 8.7 million shares were repurchased for $65 million as part of a three-year, $500 million program approved by the Board of Directors in May 2024.

CEO Kevin Plank expressed confidence in the company’s transformation and its focus on an updated marketing strategy, emphasizing a multi-year initiative to enhance brand visibility and athlete connections.