Under Armour, Inc. reported a challenging fiscal performance for the three and six months ended September 30, 2024, with significant declines in net revenues and net income compared to the same periods in 2023. For the three months, net revenues decreased by 10.7% to $1,399.0 million from $1,566.7 million, while for the six months, revenues fell by 10.4% to $2,582.7 million from $2,883.6 million. The decline was attributed to lower demand in the wholesale channel and decreased sales across key product lines, including apparel and footwear.

Gross profit for the three months ended September 30, 2024, was $696.1 million, down from $748.5 million in the prior year, although the gross margin improved to 49.8% from 47.8%. The company reported an operating income of $173.1 million for the three months, an increase from $139.5 million in 2023, driven by a reduction in selling, general, and administrative expenses, which decreased by 14.6% to $519.8 million.

Net income for the three months ended September 30, 2024, was $170.4 million, compared to $104.7 million in the same period of 2023. However, for the six months, the company reported a net loss of $135.0 million, contrasting with a net income of $114.7 million in the previous year. The effective income tax rate for the three months was a benefit of (1.3)%, compared to 21.4% in 2023.

In terms of strategic developments, Under Armour announced a restructuring plan on May 15, 2024, with estimated pre-tax charges of $140 million to $160 million for Fiscal 2025 and 2026. This plan includes cash-related charges for employee severance and benefits, as well as non-cash charges for asset impairments. The company also recognized a net gain of $5.3 million from the sale of the MapMyFitness platform during the quarter.

The company’s total current assets decreased to $2,569.7 million as of September 30, 2024, from $2,863.7 million as of March 31, 2024. Total liabilities decreased to $2,509.4 million, while total stockholders' equity fell to $1,985.2 million. Under Armour's cash and cash equivalents stood at $549.8 million at the end of the period, down from $672.6 million a year earlier.

Additionally, Under Armour has been involved in ongoing litigation, including a significant settlement of $434 million related to a class action lawsuit, which was funded by cash reserves and insurance proceeds. The company is also monitoring its financial health and compliance with its amended credit agreement, which includes covenants related to its debt levels and interest coverage ratios.