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.