Shadman Mehri, Chief Legal Officer at Under Armour (NYSE:UAA), Inc. (NYSE:UA), recently sold a significant portion of the company's Class C common stock. The transactions, disclosed in a recent SEC filing, involved the sale of 17,240 shares on November 15, 2024, at a weighted average price of $8.7601, and an additional 9,639 shares on November 18, 2024, at a weighted average price of $8.8081. These sales amounted to a total of $235,925. Following these transactions, Mehri retains ownership of 172,899 shares of Class C common stock and 1,570 shares of Class A common stock.
In other recent news, Under Armour has reported its Q2 2025 earnings, surpassing expectations with an adjusted operating income of $50 million and revising its outlook for the fiscal year. Despite an 11% decline in revenue to $1.4 billion, largely due to decreased demand in North America, the company noted improvements in gross margins and a decrease in SG&A expenses. A shift towards a premium e-commerce model has led to an increase in full-price sales, now accounting for 50% of e-commerce revenue. The company also plans to open a new flagship store at its Baltimore headquarters, aiming to offer a premium shopping experience. Under Armour is also expanding its restructuring plan, focusing on optimizing logistics, which is expected to result in charges between $140 million to $160 million. The company anticipates a low double-digit revenue decline for fiscal 2025, with a 14% to 16% drop expected in North America. However, gross margin expectations have increased, with an improvement of 125 to 150 basis points anticipated. These are among the recent developments for Under Armour.
InvestingPro Insights
The recent stock sales by Under Armour's Chief Legal Officer, Shadman Mehri, come at a time when the company's stock has shown significant momentum. According to InvestingPro data, Under Armour has experienced a strong return over the last three months, with a 9.55% price total return. Even more impressive is the 35.64% price total return over the past six months, indicating a large price uptick that aligns with one of the InvestingPro Tips.
Despite these positive price movements, Under Armour's financial performance presents a mixed picture. The company's revenue for the last twelve months as of Q2 2023 stood at $5.4 billion, with a revenue growth of -7.89%. This decline in revenue is reflected in the company's profitability, as an InvestingPro Tip notes that Under Armour has not been profitable over the last twelve months.
However, there are signs of potential improvement. Another InvestingPro Tip reveals that analysts predict the company will be profitable this year. This optimism is further supported by the fact that 5 analysts have revised their earnings upwards for the upcoming period, suggesting a potentially brighter financial outlook for Under Armour.
For investors considering Under Armour's stock, it's worth noting that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing some financial stability. The stock's current price of $8.83 is 80.7% of its 52-week high, indicating room for potential growth if the company can capitalize on its improved earnings forecasts.
InvestingPro offers 8 additional tips for Under Armour, providing a more comprehensive analysis for those interested in deeper insights into the company's financial health and market position.
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