Under Armour's Quarterly Sales Decline Less Than Expected Due to Steady Holiday Demand

• Company plans to cut approximately 25% of its product lines while focusing on higher-priced items in training, running, and team sports categories
• Revenue of $1.33 billion exceeded analyst estimates of $1.31 billion, driven by streamlined operations and restructuring efforts
• Baltimore-based retailer is reducing promotional discounts and expanding its premium segment portfolio as part of ongoing turnaround initiatives

Summary

Under Armour Reports Better-Than-Expected Q3 Results Amid Turnaround Efforts

Under Armour posted a smaller revenue decline than analysts anticipated for its fiscal third quarter ended December 31, 2025. The sportswear company reported a 5% revenue drop to $1.33 billion, beating expectations of a 6.3% decline to $1.31 billion.

Key Strategic Initiatives:

The Baltimore-based retailer's turnaround strategy focuses on:

• Simplifying product assortment by cutting approximately 25% of product lines
• Reducing promotional discounting
• Expanding premium segment offerings
• Streamlining operations through cost-cutting measures
• Concentrating on higher-priced items in training, running, and team sports categories

Market Performance:

The better-than-expected results demonstrate that Under Armour's restructuring efforts are beginning to stabilize demand, particularly during the critical holiday shopping season. The company's shift toward premium products and reduced discounting appears to be supporting revenue despite ongoing challenges in the competitive athletic apparel market.

Sector Context:

Under Armour's performance comes as the sportswear industry faces pressure from changing consumer spending patterns and intense competition. The company's focus on operational efficiency and premium positioning represents a strategic pivot to improve profitability and market share.

The results suggest Under Armour's multi-year transformation plan is gaining traction, though the company continues to face headwinds reflected in the overall revenue decline. Investors will be watching whether these initiatives can return the brand to sustainable growth in upcoming quarters.