Under Armour, Inc.

a day and welcome to the fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on each of your own phones. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Lance Olega, Senior Vice President, Finance and Capital Markets. Please go ahead.

Good morning, and welcome to Under Armour's fourth quarter fiscal 2025 earnings conference call. Today's call is being recorded and will be available for replay. Joining us on this morning's call are Under Armour President and CEO Kevin Plank and Chief Financial Officer Dave Bergman. Before we begin, I'd like to remind everyone that our remarks today will include forward-looking statements that reflect under our management's current views as of May 13, 2025. These statements may include projections about our future performance and are not guarantees of future results. Actual results may differ materially due to several risks and uncertainties, which are described in this morning's press release and in our filings with the SEC, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Today's discussion may also reference non-GAAP financial measures, which we believe provide useful insight into our underlying business trend. When applicable, reconciliations of these non-GAAP measures to their most comparable GAAP counterparts can be found in this morning's press release and on our investor relations website at about.underarmor.com. With that, I'll turn the call over to Kevin.

Thank you, Lance, and everyone joining us this morning. I felt confident as we closed fiscal 25 and began preparing for this call. Over the past year, we've built greater agility in the organization while making purposeful and strategic choices, elevating the brand through higher quality revenue decisions, unlocking meaningful SG&A efficiencies, and advancing toward a stronger, healthier Under Armour, all while navigating top-line pressures. We had a clear and disciplined strategy tailored to the environment we faced in fiscal year 25 and executed it with focus and determination. Today, we are energized and optimistic about our tangible progress, recognizing, of course, that there is still much work to be done to arrest our current trajectory and drive brand affection. As we look externally, the business environment is currently evolving, is always evolving, but so are we. Yes, the landscape is more dynamic and visibility beyond the near term is unclear. That's precisely why our work over the last 13 months to build the muscle strength of agility and focus matters. We know what it takes to win and we're ready. Dave will cover our initial thoughts in the current trade policy environment a bit, but the main takeaway is that we're confident in our ability to manage through whatever lies ahead and stay on offense. While we were never satisfied with declining revenue, our fourth quarter results allowed us to exceed our fiscal 25 outlook, demonstrating some of the foundational attraction we're gaining as we reposition the Under Armour brand. Furthermore, we either exceeded or met the initial outlook we provided last May for every line item, with gross margin being our most important metric. that benefited from our strategies of reducing promotions in our own DTC businesses. As we work to regain pricing power, which is the ability to deliver and maintain the full retail asking price, we see a significant long-term opportunity to expand gross margin by reshaping the composition of our business through a strategic refinement in our go-to-market process. By being more comprehensive, ensuring that every detail is considered from product that only UA could make, this is our reason to exist. Innovation delivered with current or forward style. Salesforce, armed with the technical knowledge of how to explain the UA difference to wholesale partners. Third, the right point of purchase expression at retail or online that tells the story. And finally, of course, social media, collaborator, and influencer support that provides the permission for our target consumers to engage with and buy UA. We have a great base to build from, and we'll continue to refine this competency in the coming seasons. Reflecting on my first year back as CEO, I'm proud of the progress we've made. sharpening our strategy, streamlining operations, and establishing a stronger financial foundation. Most importantly, we've confirmed our identity as a global sports house brand with undeniable authenticity on any court, pitch, or field across the world. We represent the underdog, those who weren't given all of God's gifts but had to instead work harder to achieve excellence, who had applied the rule of 10,000 hours to master their craft. We like to say that we don't innovate just so that we can run up the score, we innovate just to give our athletes a fighting chance. This mindset also means continually striving for improvement. And in that spirit, we're becoming leaner and more intentional, shrinking the battlefield wherever possible, which makes challenges manageable and creates the ability for small wins to eventually add up to large wins. We're focusing on high return categories, markets, and initiatives. By simplifying the portfolio, streamlining operations, and exiting lower value activities, we're sharpening execution, boosting efficiency, and directing capital to its highest impact uses. Fewer things done better will fuel stronger, more consistent value creation. We're working to turn complexity into clarity, and clarity into action. Quick strike capabilities drive brand heat through trend-led drops, while our 28 million member global loyalty program deepens engagement and drives repeat purchases. At the same time, Streamlining materials, reducing skews, and efforts to optimize our supply chain will help improve speed, lower costs, and unlock future growth. With sharper planning and greater capability, we're working to run a more agile, demand-led model that keeps us aligned with athletes and well-positioned to regain market share and expand margins over the long term. At our core, Under Armour was built on the belief that athletes deserve better. Today, we're fulfilling that promise with greater discipline and precision. As we evolve, our move toward a category management operating model represents a structural shift and a game changer in how we serve athletes. By aligning product, marketing, and regional teams around key categories like training, running, team sports, basketball, sportswear, golf, and licensing, we aim to execute faster and create greater impact. This athlete-first model gives category teams clear ownership, with a single leader responsible for making decisions and acting with speed. At the same time, it centralizes key functions while empowering regional strategies to drive a leaner, more efficient go-to-market engine, strengthening the brand and improving returns. This disciplined approach is how we believe we will unlock value and succeed in the marketplace. Stepping back into my current role and due to the 18-month lead times in our industry, the priority was product. Without great product, there is nothing else. Our spring-summer 25 collections hit retail floors with renewed confidence in the fourth quarter. Even in a challenging sales environment, key apparel wins emerged. Heat Cure Base Layer outperformed expectations. Our unstoppable collection delivered strong results, and sportswear is gaining meaningful traction. At the center, we're accelerating innovation to energize athletes and elevate the brand. This quarter, we introduced the boldest slip speed yet, Echo, launched with Stephen Curry at the 2025 NBA All-Star Weekend. through a collaboration with luxury car designer Mansory. Looking ahead, a premium apparel collection will debut this fall, uniting performance, sport, and style. The Curry brand continues to expand its impact with a steady flow of the new Curry 12 and De'Aaron's Fox One colorways, along with exclusive athlete designs, keeping the brand in view and culturally relevant. On the collaboration front, we've had smaller drops like our UA United Arrows collab, in Japan in our partnership with recently acquired UNLESS, debuting at the Milan Design Week. Our regenerative plant-based sportswear collection of hoodies, T-shirts, and shorts, all crafted from natural fibers designed to decompose without leaving toxic residue or microplastics. As we look toward fall-winter 25, our product direction continues to sharpen, and our design language is becoming more cohesive. Our priorities are clear. Win in men's apparel, unlock the full potential of footwear, and strengthen our connection with women, starting with trusted essentials like bras and bottoms, and then building from there to grow her affinity for Under Armour. We're especially energized by the upcoming UA Halo collection, codenamed Aura, at our recent investor meeting, which represents a premium expansion into next-generation performance sportswear. UA Halo will debut with three distinct footwear offerings, a trainer, runner, and a racer. each designed to meet specific athlete needs while uniquely incorporating the UA logo into the midsole structure, adding support and, just like our logo, perfect balance. Complementing the footwear is a range of elevated apparel that signals a new era for the brand in both design and innovation. At the same time, we're redefining our core base layer category with Neolast, material fiber breakthrough engineered to revolutionize stretch performance in apparel while being fully sustainable. As we near the completion of our initial 25% SKU reduction over the past year, we're maintaining disciplined inventory management to create space for a stronger, more focused product architecture. Together, these steps will drive brand momentum, enhance profitability, and unlock new growth opportunities. Our ambition, put simply, is to sell so much more of so much less at a much higher full price. And there's a Trojan horse product in the mix, too. a game changer disguised as a backpack. The No Way, that's W-E-I-G-H backpack, launched this past Thursday in a short-term test format for us with patent-pending auxetic suspension straps that flex with your body to help evenly distribute weight, creating a lighter feeling from the bag. It's amazing. We're not only testing the bag, but also the $140 price point in an otherwise $40 to $65 market. Similar to what we did last year with our Stealth Form Uncrushable Hat, bringing innovation to a $13 to $25 market, introducing the UA performance lens and placing the opening price point at $45. And that hat is working for us. I'm providing this level of detail about an accessory item because it's meant to serve as a broader metaphor for what we expect to do with our shirts and shoes going forward, with four to six products each season for spring and fall. This example is meant to set the edge for what you can expect from our go-to-market for these key four to six products each season. comprehensive go-to-market strategy that inspires consumers to want to buy UA at premium price points. If you have the chance, please visit our investor page now at aboutunderarmor.com for a more complete visual of our new go-to-market approach and how we're raising the bar here at UA. This includes, as I described earlier, first and foremost, an innovative design right product that only UA could build It also encompasses the tools and the story of how our teams are being prescriptively trained to sell the product, brand right point of sale execution, and finally, social and influencer support to drive buzz and conversion. But this only happens when the product delivers the magic, and we're confident in our pipeline. We, frankly, have always had great innovation, but believe the largest opportunity lies in the way we holistically support the product with a story that both explains why it is special and also makes you feel something. This is brand, and great companies buy commodities and sell brand. We've not done a good job enough on the story front for some time, and that changes with the execution we just completed in launching the No Way last week in our testing protocol. This will prepare us for when we come back with this bag in a few months for broad market distribution in the critical back-to-school period. Over the past nine months and the leadership of brand president Eric Lidke, we've made substantial progress in reshaping our narrative, Today, we have a distinct storytelling strategy aligned with our product vision, establishing a cohesive brand voice across all touchpoints. As our storytelling aligns with the strength of our product innovation in fiscal 26, our objective is to enhance our brand relevance and unlock greater brand differentiation. We're particularly focused on young athletes. We're not increasing our marketing spend. Instead, we're making it work harder. With an annual budget of roughly $500 million and some of the world's top sports athletes and assets, we're reallocating resources more intentionally to generate greater brand heat and engagement. Big moments drive brand affinity. As Stephen Curry continues to break his own three-point record, the night he was set to make three-pointer number 4,000 of his career, we created an epic Dave Chappelle-narrated campaign that didn't just follow the moment, it defined it. The campaign, which ran across social media, was a cultural splash of brand relevance that put UA at the forefront of basketball fans worldwide. Sharon Locati's recent record-breaking Boston Marathon win wearing an Under Armour shoe was another decisive moment for the Velocity Elite, showcasing its performance on the world stage. We backed it with a full funnel campaign celebrating her achievement and firmly positioned Velocity Elite as the go-to choice for runners chasing greatness. Across the lineup now, from the $250 Elite that Sharon just validated to the $160 Pro, to the $130 speed and the $100 pace. Velocity meets runners at every level, driving brand and energy and commercial opportunity. Building on this momentum, we're extending Velocity's design language into one of our highest volume footwear franchises, the $75 SIRT, which will relaunch with its updated design this fall, further strengthening segmentation and expanding our reach across price points. A more visual description of this product or pricing hierarchy It's also outlined on our investor page. We encourage you to view this and a few other examples of what is different at UA and how we're raising the bar. Our athlete strategy is equally intentional. New signing like the NBA's Davion Mitchell, WNBA's Nika Mule, and six NIL athletes who we signed in time for this past March Madness and are part of a disciplined approach to re-architecting a future-facing roster that we will continue to nuance. Meanwhile, the impact is clear. 27 UA teams made the NCAA tournament with one of our Under Armour teams from both the women's and men's bracket reaching the final four. In golf, we'd like to extend our heartfelt best wishes to longtime Under Armour athlete and one of the truly great people in sports, Jordan Spieth, as he competes this weekend at the PGA Championship, chasing the elusive career Grand Slam. We're all behind you, Jordan. Go get them. And also this fall, we're reaffirming our American football roots when Under Armour is back on field as an official glove and footwear provider for the NFL, strengthening our performance credentials. Stars like Justin Jefferson and Kyle Hamilton, along with this year's number one draft pick Cam Ward, further enhance our status in a sport central to our identity. Additionally, we're evolving our marketing mix to meet modern consumer behavior by emphasizing social, experiential, and digital-first branding buildings. UA Next, which is our global youth activation platform, utilizes events like the Under Armour All-America football and volleyball games earlier this year, along with serialized content and grassroots activations that are gaining traction, and partnerships with creators and major colleges like Notre Dame, Wisconsin, Maryland, who help drive scalable, story-driven campaigns. This marks a true shift in our strategy. Fewer, bolder moves amplified by better storytelling and smarter deployment of world-class assets. This is how we will build brand energy and win share with athletes, partners, and shareholders. Under Armour is moving to lead in the dynamic environment among leagues, teams, co-labs, influencers, and, of course, NIL. And we're making steady progress toward that goal. Our North American transformation is well underway. Over the past year, we've been working to redefine our e-commerce channel to become a brand flagship, a destination that inspires and elevates. By reducing promotional days and discounts, we've prioritized brand equity and profitability over short-term volume. The results speak for themselves. More than 10-point increase in the full price sales mix, double-digit AUR growth, and a more profitable channel overall. As we enter year two of this transformation, we'll move even further beyond the outlet model to build a more dynamic, connected, and premium digital platform, applying proven lessons from our success in EMEA to accelerate progress. We also see a clear opportunity to strengthen our value proposition in physical retail. Driving productivity across our formats remains a top priority. In factory house stores, our largest North American footprint, we are significantly reducing store-wide sales, events and offering 365 days a year of full price on some products too. Focusing on skew rationalization to create a more curated premium experience that enhances consumer clarity and operational efficiency. Our brand houses represent the pinnacle of UA retail, and we're investing accordingly. Our new campus headquarters flagship store is performing ahead of expectations, and the new aesthetic is helping us shape our next retail concept to model for the more than 2,000 Under Armour branded stores around the world, allowing for flexibility in store size to fit the specific market. Growing our store base is a future ambition as we become more deliberate with our products and the stories that sell them. Starting in fiscal 26, we'll roll out a tiered market-specific strategy to enhance merchandising and drive productivity across our network. Wholesale remains critical and is evolving. We owe our partners great product and a compelling story that results in great sell-through at full price. We know where we want to be and who we want to partner with, and we're using this time to strengthen those key relationships with transparency of our brand direction, underpinned by our conviction in offering fewer products with more intention that could only come from UA. Our category-led model significantly helps there, combined with a sharp and go-to-market discipline that we expect will result in greater demand from both the consumers we have today and the new ones we are inviting to engage with us. In EMEA, our top-performing region in fiscal 25, we're maintaining the discipline to protect the brand strength we've built. Strong partnerships and a clear category focus will drive momentum. In fiscal 26, we'll concentrate on key growth markets like France, Spain, and Germany, while deepening brand advocacy across global football, running, and sportswear, anchored in training. In APAC, we're resetting the marketplace now to foster sustainable premium growth. Despite a highly promotional environment, our efforts to streamline inventory, reduce discounting, and enhance sales quality are laying the groundwork for healthier expansion. Just a few months in now, though brief, early signs indicate that it's working. UA's strong performance-driven brand equity and best-in-class distribution infrastructure position us to scale with appropriate patience and pace. We'll continue to apply proven strategies from North America and EMEA to drive full-price demand across key categories. At the core of our progress is a high-caliber leadership team, united by purpose and built to drive sustained performance. We haven't just added talent. We've attracted exceptional, proven leaders, many of whom you met at our December investor meeting. This represents a structural shift that signals a cultural transformation at Under Armour. A higher standard of excellence is firmly taking root and I'm committed to ensuring the leadership strength translates into sharper execution and improved results. We're quite simply raising the bar at UA. The impact is clear and it is our culture that stands to benefit. The move to our new headquarters has accelerated this shift, infusing the company with fresh energy and new ideas. While cultural change takes time, The foundation is firmly in place, and the momentum is unmistakable. We're building a more connected, agile, and performance-driven Under Armour that seems to be taking hold. We also welcome three new board members, Don Fitzpatrick, Gene Smith, and Rob Sweeney, each bringing expertise in finance operations and sports. Their leadership directly supports our strategic priorities, accelerating financial performance, strengthening our connection with athletes, and fueling brand heat. They'll be instrumental as we unlock new growth and position UA for success. As we enter fiscal 26, sustaining momentum across product, story, service, and team is critical for advancing our brand transformation. We move forward with clarity, conviction, and discipline, thoroughly attuned to the shifting global landscape and ready to navigate it with agility and resilience. Our ambition goes beyond a comeback. It's a reinvention. Under Armour's greatest chapters remain in front of us, a future driven by sharper focus, bolder innovation, and deeper connections with athletes. We're operating with urgency. While we may have more time than we think, we do not have as much time as we would like. So we're just getting to work. With the right team in place, a clear strategic vision, and an unwavering commitment to excellence, we're not merely preparing for the future. We're determined to dictate it. With that, I'll turn it over to Dave, who will walk us through our fourth quarter fiscal 25 results and provide further insight. into our outlook for the first quarter. Dave, over to you.