$UAA: Q1 Earnings Unpacked - Key Analyst Questions & a Major Past Opportunity for Investors!

Court: D. Maryland

Case: 1:17-cv-00388

• UAA's Q1 results beat revenue and adjusted EBITDA estimates.
• Management focused on brand repositioning and DTC.
• Unscripted analyst questions reveal key areas.
• A significant past investor settlement.

Under Armour (UAA) recently reported its first quarter CY2025 results, reflecting ongoing efforts to reposition the brand. While revenue declined year over year, management highlighted proactive inventory management, disciplined discounting, and advances in direct-to-consumer (DTC) strategies. CEO Kevin Plank stated, “Our fourth quarter results allowed us to exceed our fiscal outlook, demonstrating some of the foundational traction we’re gaining as we reposition the Under Armour brand.”

Here's a quick look at the Q1 CY2025 highlights:

• Revenue: $1.18 billion (vs estimates of $1.17 billion - a 1.3% beat)
• Adjusted EPS: -$0.08 (in line with estimates)
• Adjusted EBITDA: $3.41 million (vs estimates of -$4.15 million - a significant beat)
• Q2 CY2025 Revenue Guidance: $1.13 billion (midpoint, below estimates)
• Q2 CY2025 Adjusted EPS Guidance: $0.02 (midpoint, above estimates)
• Market Capitalization: $2.95 billion

Earnings calls often reveal more through unscripted analyst questions. Here's what caught attention in UAA's Q1 call:

• North American Reset: Jay Sole (UBS) probed on the progress, with CEO Kevin Plank detailing leadership changes and a comprehensive approach for brand affection.
• E-commerce Normalization: Simeon Siegel (BMO Capital Markets) inquired about revenue stabilization as promotions reduce, focusing on a "healthier, brand-right foundation."
• Inventory Trends: Sam Poser (Williams Trading) questioned inventory and premium strategy, with Plank emphasizing tight management and higher average unit retail.
• Order Book & Tariffs: Laurent Vasilescu (BNP Paribas) asked if recent tariff news impacted partner behavior; management reported no significant cancellations.
• Product Pyramid: Peter McGoldrick (Stifel) sought insight into evolving product lines, with management aiming to increase "best" products for pricing power and margin improvement.

Beyond Earnings: A $434 Million Opportunity for UAA Investors

While UAA focuses on its brand transformation, it's crucial for investors to be aware of past events that have led to significant financial recovery opportunities. Under Armour previously agreed to a massive $434 million settlement with investors.

• The Allegation: In 2017, UAA was accused of misleading investors about its revenue growth and business prospects.
• The Result: On January 31, 2017, UAA's stock price dropped a sharp 26% following these revelations.
• Your Eligibility: If you were an investor affected by these events (e.g., purchased UA or UAA shares between September 16, 2015, and November 1, 2019, depending on the class period), you could be entitled to a share of this $434 million fund.

Get more info and file a claim HERE.