Under Armour reported “another year of declining sales” on Tuesday as the company “continued a sweeping restructuring effort under founder and CEO Kevin Plank,” according to Todd Karpovich of the BALTIMORE SUN. Under Armour reported Q4 revenue of $1.2B, down 1% from the same period a year earlier, while full-year revenue fell 4% to $5B. North America, Under Armour’s largest market, “remained a challenge,” with quarterly sales down 7% and annual sales declining 8% to $2.9B. The company “pointed to signs of improvement internationally,” where Q4 revenue rose 10% to $539M. Sales grew 13% in Asia-Pacific and 22% in Latin America during the quarter. Plank, who returned as CEO in 2024, indicated that the company is “deliberately shrinking parts of the business that were not profitable while narrowing its focus on fewer products, tighter operations and higher-margin categories.” Plank during a conference call with analysts on Tuesday said, “Intentionality will define this chapter for the brand. We’ve executed a deliberate reset of the business, making more intentional choices about where and how we compete.” Karpovich notes Under Armour expects FY2027 revenue to “decline slightly again, though executives forecast improved profitability.” The company projects operating income between $96M and $116M next year (BALTIMORE SUN, 5/12). Plank during Tuesday’s call admitted that the company “needs to pick up the pace on the turnaround.” Plank: “We are not improving our bottom line fast enough. While confident in our strategy, we will continue to work the mix and prioritize near-, mid- and long-term profitability” (BALTIMORE BUSINESS JOURNAL, 5/12).
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