Footwear revenue declined 14% due to portfolio optimization and softer demand; apparel declined 1%, accessories grew 8%.
Gross margin improved by 70 basis points to 48.2%, driven by favorable currency, pricing benefits, and product mix, partially offset by channel mix and supply chain headwinds.
Inventory increased 2% to $1.1 billion; cash balance rose to $911 million following a $400 million senior notes issuance.
Operating income was $3 million, with adjusted operating income of $24 million after excluding restructuring and transformation charges.
Reported diluted loss per share was $0.01, adjusted diluted EPS was $0.02.
Under Armour reported Q1 2026 revenue of $1.1 billion, down 4% year-over-year, with regional declines in North America (-5%), APAC (-10%), and Latin America (-15%), while EMEA grew 10%.
Adjusted diluted EPS rose 5% to $4.23, supported by strong free cash flow of $269 million, enabling share repurchases and debt repayment.
Adjusted gross margin improved by 30 basis points to 61.7%, with Crocs Brand margin flat at 64.1% and HEYDUDE margin up 110 basis points to 50.2%.
Adjusted operating margin declined 240 basis points to 26.9%, driven by increased SG&A expenses and a $737 million noncash impairment charge on HEYDUDE intangible assets.
Crocs reported Q2 2025 revenues of $1.1 billion, up 3% year-over-year, with Crocs Brand revenues increasing 4% to $960 million and HEYDUDE revenues declining 4% to $190 million.
Inventory increased 7% to $405 million, partly due to elevated tariff costs, while net leverage remained at the lower end of the target range of 1x to 1.5x.
Adjusted EBITDA was $205 million, representing a 6.3% margin on net revenue, including a 7.8% adjusted EBITDA margin in the U.S. segment.
Cash from operations was $273 million, capital expenditures were $43 million, and free cash flow was $230 million, the strongest since Q3 2020.
CastleGate penetration increased by about 400 basis points year-over-year to roughly 25%, improving logistics efficiency and customer experience.
Gross margin was 30.1% of net revenue, reflecting tactical investments and demand elasticity measurement.
Net revenue grew 5% year-over-year and 6% excluding the impact of the exit from Germany, driven by strong performance across all brands and geographies.
Selling, operations, technology, general and administrative expenses were $370 million, down roughly $30 million year-over-year.
The company ended the quarter with $1.4 billion in cash and equivalents and $1.8 billion in total liquidity.
U.S. business revenue increased over 5%, and International segment grew over 3%, with Canada, the U.K., and Ireland showing momentum.
Adjusted diluted EPS increased 28% to $1.19 per share, significantly outpacing adjusted EBITDA growth due to accretive share repurchases.
Adjusted gross profit grew 5% to $1.8 billion, supported by volume growth, improved cost of goods, disciplined inventory management, and increased private label penetration.
Net sales increased 3.8% to $10.1 billion, driven by 0.9% case volume growth and 2.9% food cost inflation and mix impact.
Operating cash flow increased by $104 million to $725 million year-to-date, supporting record capital investments and $273 million in share repurchases.
US Foods delivered record second quarter adjusted EBITDA of $548 million, a 12% increase year-over-year, with an all-time high adjusted EBITDA margin of 5.4%, up 40 basis points.
Dafinchi