Under Armour Inc Class A (NYSE:UAA) stock rose 2.63% (As on May 14, 11:26:27 AM UTC-4, Source: Google Finance) after the company’s top and bottom lines exceeded the market’s expectations. However, both metrics decreased year over year. Wholesale revenues fell 9.7% year over year to $767.6 million, while direct-to-consumer revenues declined 15.1% to $386.1 million. Revenues from company-owned and operated stores dipped 6%, whereas e-commerce revenues dropped 27% due to planned reductions in promotional activities. E-commerce accounted for 37% of the total direct-to-consumer business for the quarter. UAA ended the quarter with cash and cash equivalents of $501.4 million, long-term debt (net of current maturities) of $595.1 million and total stockholders’ equity of $1.89 billion.

Moreover, in product category, Apparel revenues declined 11.1% year over year to $780.4 million. Footwear revenues decreased 16.5% to $281.8 million. Revenues from the Accessories category rose 2.3% to $91.5 million. Meanwhile, Licensing revenues dropped 14.9% to $24.2 million. Revenues from North America declined 10.7% to $689.4 million. Meanwhile, revenues from the international business decreased 12.9% (down 10% on a currency-neutral basis) to $488.5 million. Within the international segment, revenues from Europe, the Middle East and Africa (EMEA) decreased 1.9% year over year to $278.6 million. Revenues from the Asia-Pacific dropped 27.3% to $164.8 million. Latin America saw a 10.3% decline to $45.1 million.

UAA in the fourth quarter of FY25 has reported the adjusted loss per share of 8 cents, beating the analysts’ estimates for the adjusted loss per share of 9 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 11 percent to $1,180.6 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1,163 million. Under Armour reported gross profit of $550.8 million, down 8.1% year over year. The company’s gross margin expanded 170 basis points to 46.7% from the prior-year period. This was driven by supply-chain improvements such as lower product and freight costs, decreased direct-to-consumer discounting and favorable effects from product mix and foreign exchange.

For the first quarter of fiscal 2026, Under Armour expects revenues to decline four-five percent compared with the same period in fiscal 2025. This projection includes a four-five percent drop in North America, high single-digit growth in the EMEA region and a mid-teen percentage decrease in Asia-Pacific. The gross margin is expected to expand 40-60 basis points year over year. The adjusted operating income, excluding restructuring and transformation expenses, expected between $20 million and $30 million and the adjusted earnings per share are expected to be between one cent and three cents.