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Despite sales that were down in the double digits across the board in the second quarter, Under Armour<\/a> claimed it continued to make headway in its quest to become a more premium brand.<\/p>\n <\/p>\n <\/p>\n In the period ended Sept. 30, the Baltimore-based sports giant, reported operating income was $173 million. Excluding charges, the adjusted operating income was $166 million. Net income was $170 million and adjusted net income was $131 million.<\/p>\n <\/p>\n <\/p>\n Overall sales were down 11 percent to $1.4 billion, in line with expectations. North America revenue decreased 13 percent to $863 million, and international revenue decreased 6 percent to $538 million. In the international business, revenue in EMEA was down 1 percent, down 11 percent in Asia-Pacific, and down 13 percent in Latin America.<\/p>\n <\/p>\n <\/p>\n Wholesale revenue decreased 12 percent to $826 million, and direct-to-consumer revenue was down 8 percent to $550 million. Revenue from owned and operated stores remained flat. As a result of planned decreases in promotional activities, e-commerce revenue \u2014 which represented 30 percent of the company\u2019s direct-to-consumer business in the quarter \u2014 decreased 21 percent.<\/p>\n <\/p>\n <\/p>\n By category, apparel revenue decreased 12 percent to\u00a0$947 million, footwear<\/a> revenue was down 11 percent to\u00a0$313 million, but accessories revenue was up 2 percent to\u00a0$116 million.<\/p>\n <\/p>\n <\/p>\n “Our second quarter fiscal 2025 performance demonstrates that our strategy to reconstitute the Under Armour brand and establish a more premium position in the marketplace is gaining traction,” said\u00a0Under Armour\u00a0president and chief executive officer\u00a0Kevin Plank<\/a>. “With better-than-expected results, we are pleased to raise our full-year profitability outlook while simultaneously increasing marketing investments to amplify our brand.”<\/p>\n <\/p>\n <\/p>\n Plank continued, “We are a fundamentally stronger business today with increasingly better execution across key dimensions. This includes more consistent marketplace discipline through meaningfully improved product, storytelling, and sales leadership, which will deliver a sharper, unique approach to our brand position in the years ahead.”<\/p>\n <\/p>\n <\/p>\n As reported, in May of this year, shortly after Plank took back the reins of the company he founded<\/a>, Under Armour unveiled a restructuring plan, one that was updated in September following the announcement of its plan to close a distribution facility in Rialto, Calif.<\/a> That move increased restructuring charges to $140 million to $160 million. As of the second fiscal quarter of 2025, the company said it has recognized $28 million in restructuring and impairment charges and $11 million in other related transformational expenses. The remainder of the charges are expected to occur during fiscal 2025 and fiscal 2026, the company said.<\/p>\n <\/p>\n <\/p>\n While the figures reported Thursday morning were not pretty, they were not unexpected and led the company to updates its fiscal 2025 outlook. Revenue is now expected to decline at a low double-digit rate \u2014 that includes an anticipated 14 to 16 percent decline in North America, a low single-digit percent decline in its international business, with flat results in EMEA offset by a high single-digit decline in its Asia-Pacific business.<\/p>\n <\/p>\n <\/p>\n The operating loss is expected to be less, however. Under Armour now expects that figure to come in at $176 million to $196 million, compared to the previous expectation of $220 million to $240 million. Excluding the restructuring charges, adjusted operating income is expected to be $165 million to $185 million, compared to the prior expectation of $140 million to $160 million.<\/p>\n <\/p>\n <\/p>\n