The following is a summary of the Under Armour, Inc. (UAA) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Under Armour reported a Q4 2024 revenue decrease of 5% to $1.3 billion, driven by softer wholesale demand, off-price channel sales, and a downturn in e-commerce.

• The gross margin increased by 170 basis points to 45% due to lower product and freight costs and a favorable channel mix.

• For fiscal year 2024, revenue declined by 3% to $5.7 billion, primarily due to challenges in the North American business.

• In 2025, the company expects revenue to fall at a low double-digit rate. This includes a 15-17% decline in North America and a single-digit decline internationally.

• Under Armour expects a gross margin improvement of 75 to 100 basis points in fiscal 2025 due to reduced promotional activities and product costing initiatives.

• The company anticipates Pre-tax restructuring and related charges to fall between $70 to $90 million.

Business Progress:

• Under Armour is focusing on rebuilding brand strength by manufacturing superior products, creating effective marketing narratives, and improving business delivery.

• The company plans to reduce its SKU count by about 25% in the next 18 months and will focus on scaling better and best offerings to drive segmentation balance.

• It is working on faster go-to-market capability and plans to offer direct-to-consumer exclusive products.

• It will reorganize its product and marketing teams around its largest revenue sports categories for efficient single go-to-market strategies.

• The company aims to enhance consumer experiences by upgrading retail, e-commerce, and wholesale businesses with meticulous merchandising strategies and thoughtful distribution choices.

• A total brand rejuvenation is in progress, with a keen focus on their e-commerce platform and innovative product lines.

• Under Armour plans to augment its operations, strategy, product development, and marketing with a stronger executive team and efficient restructuring plans for higher returns and sustainable shareholder value.

• Internationally, efforts are underway to economically grow while maintaining brand reputation.

• Under Armour's CEO is focused on bridging the gap between high-quality product offerings and corresponding brand storytelling, supplemented by a unique market positioning and distribution strategy revamp.

• The brand also plans to expand in the APAC region and improve its in-store product presentation in the United States.

• A new three-year, $500 million share buyback program has been approved.

More details: Under Armour-A IR

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