Under Armour, Inc. Q3 FY2026 earnings call

• Kevin Plank emphasized focus on execution in turnaround, simplified operating system, inventory down, adjusted results ahead of expectations. Mentioned brand health in US improving, product as currency with progress in apparel/accessories like base layer, ICON fleece, women's Meridian franchise. Spring/Summer 2026 products to have more cohesive design. Footwear reset underway with exiting low productivity styles, tightening price tiers. Team sports as core driver with momentum in American football, flag football, etc. - David Bergman talked about implementing structure including category-managed operating model, leadership changes (Kara Trent as Chief Merchandising Officer, etc.), and region performances (North America turning corner, EMEA solid, APAC making progress).

Revenue declined 5% to $1.3 billion. By region: North America revenue decreased 10% primarily due to lower wholesale; EMEA revenue increased 6% (reported) and 2% (currency-neutral) with growth in both wholesale and direct-to-consumer; APAC revenue decreased 5% driven by full-price wholesale; Latin America revenue increased 20% (reported) or 13% (currency-neutral). By channel: Wholesale revenue decreased 6%; Direct-to-consumer revenue decreased 4% (driven by 7% e-commerce decline); Licensing revenue increased 14%. By product type: Apparel revenue decreased 3%; Sportswear flat; Footwear revenue decreased 12%; Accessories revenue decreased 3%. Third-quarter gross margin declined 310 basis points to 44.4%, driven by supply chain headwinds, tariffs, and promotional environment, partially offset by foreign currency and product mix.

• Expect full-year revenue to decline approximately 4% (previously 4%-5% decline). - Full-year gross margin rate to decline by approximately 190 basis points. - Adjusted SG&A expenses to decline at mid-single-digit rate. - Expected adjusted operating income of approximately $110 million at high end of $95 million - $110 million outlook. - Expected adjusted diluted earnings per share of $0.10 to $0.11.

• Supply chain headwinds including higher U.S. tariffs. - More promotional environment in North America leading to pricing headwinds. - Unfavorable channel and regional mix.

Q: Simeon Siegel asked about confidence in North America stabilization and footwear stabilization.

A: Kevin Plank responded about leadership, product design, order book, and footwear segmentation, stating North America is turning corner and footwear reset is underway with focused segmentation.

Q: Jay Sole asked about progress in Europe and APAC.

A: Kevin Plank talked about EMEA's strength with 9% growth and APAC making progress with new leadership and focus on brand rebuilding.

Q: Bob Drbul asked about footwear segmentation.

A: Kevin Plank discussed good, better, best segmentation in footwear, aiming to concentrate growth at better and best levels.

Q: Sam Poser asked about emotional connection and APAC management.

A: Kevin Plank talked about creating emotional connection through product attributes and athlete credibility, and APAC's new leadership and focus on brand voice and full-price sales.

Q: Peter McGoldrick asked about complexity reduction.

A: Kevin Plank and David Bergman discussed SKU rationalization, margin impact from reduced SKUs, and future margin benefits from complexity reduction.

Q: Brooke Roach asked about North America channel and product category.

A: David Bergman and Kevin Plank talked about North America stabilization, wholesale order book improvement, and product opportunities in North America.