David Bergman

Thanks, Kevin. Digging right into our second quarter fiscal '25 results, we outperformed the profitability outlook we provided in August. However, in line with our expectations, revenue was down 11% to $1.4 billion, with a 13% decline in North America due to softer full-price wholesale demand and lower sales to the off-price channel.
Our North American DTC business was also down during the quarter, driven by a continued decline in our e-commerce business resulting from proactive strategies to reduce promotional activity, and we also experienced lower retail store sales.
EMEA revenue was down 1% on a reported and currency-neutral basis, driven by a decline in our wholesale business, partially offset by strength in DTC. Revenue in APAC was down 11% or down 10% on a currency-neutral basis due to declines in our wholesale and DTC businesses, amid a soft macro environment that continues to impact consumer traffic. In Latin America, revenue was down 13% or down 4% on a currency-neutral basis.
Growth in DTC partially offset the decline in our wholesale and distributor businesses. From a channel perspective, our wholesale revenue was down 12% in the second quarter, driven by softer demand in our full price and distributor businesses and lower sales to the off-price channel. Direct Consumer revenue declined 8% with a 21% decrease in e-commerce as we expected, given strategies to drive a more premium online presence through reduced promotions and discounts.
Sales from our owned and operated retail stores were flat in the quarter. Licensing was down 13% and primarily due to a decline in our North American business. By product type, apparel revenue was down 12% with declines across most categories in the quarter, while we had good performance in outdoor. Footwear was down 11% with declines in most categories. However, relative strength in golf and team sports, particularly cleated products partially offset the decline, and our accessories business was up 2% in the quarter.
Our second quarter gross margin increased by 200 basis points to 49.8%. This increase compared to the prior year was driven by 120 basis points of supply chain benefits due mainly to lower product cost, 50 basis points from a favorable channel mix, driven principally by a reduction in off-price sales, and 40 basis points of pricing benefits due to lower discounting and promotions, mainly in our direct-to-consumer business as we work to drive a more premium position for our brand.
And lastly, we also had lower markdowns in the wholesale channel. These benefits were partially offset by 10 basis points of headwinds from unfavorable foreign currency impacts and regional mix. The significant gross margin outperformance in the quarter relative to the outlook we provided in August was due to three main factors.
First, we saw increased supply chain benefits from additional product cost savings compared to our plan, along with lower-than-expected freight costs. Second, wholesale markdowns and allowances were less than initially anticipated. And third, our channel mix was more favorable due to lower-than-planned sales to the off-price channel.
Next, SG&A expenses were down 15% to $520 million in the second quarter. As mentioned on our last call, our second quarter benefited from a shift in the timing of marketing expenses, in this case, about $15 million, which is in our third-quarter outlook.
Excluding roughly to $13 million in benefits from a litigation-related insurance recovery and approximately $3 million in net transformation expenses related to our fiscal '25 restructuring plan, second quarter adjusted SG&A expenses were down 13% to $530 million. This decrease was primarily driven by lower marketing expenses as some of our brand investments are concentrated in the second half of the year.
As anticipated, we also recognized a $27 million SG&A benefit due to an insurance recovery for legal fees incurred in previous years. Lastly, ongoing cost management actions, including headcount reductions, also influenced the decrease.
Moving down the P&L. We recognized $3 million in restructuring charges which, together with the $3 million in transformation expenses booked in SG&A, resulted in $6 million in restructuring charges and related expenses for the quarter. Through the first half of the year, we have recognized $40 million in charges and expenses under our fiscal 2025 restructuring plan, of which roughly $36 million were cash related and $4 million were noncash expenses.
In September, we announced an expansion of our restructuring plan with additional initiatives to optimize our logistics and transportation network and overall business performance. This expansion included approximately $70 million in new opportunities, primarily related to the exit of one of our distribution facilities in Rialto, California.
This change will allow us to utilize capacity better and gain efficiencies in our remaining facilities as we invest in automation over the next several years. These efforts are expected to be completed by the end of fiscal 2026.
Incorporating this decision, we now expect between $140 million and $160 million in total restructuring charges and expenses, of which roughly two-thirds will be realized in fiscal '25 and the remainder in fiscal '26. Given the time required to wind down and close the Rialto distribution facility, this expansion to the plan is not expected to result in additional restructuring-related savings in fiscal '25, above and beyond the approximate $40 million annual savings previously disclosed.
Finally, moving to profitability. Our second quarter operating income was $173 million. Excluding the litigation related insurance recovery, transformation expenses and restructuring charges, our adjusted operating income was $166 million.
Taking this to the bottom line, we realized diluted earnings per share of $0.39, while adjusted diluted earnings per share was $0.30 in the quarter. The profitability overdrive versus our second quarter outlook was mainly due to our gross margin outperformance, with additional benefits from better SG&A expense control and shifting some marketing spending into the back half of the year.
From a balance sheet perspective, our inventory was down 3% compared to last year, which aligned with our plan. We continue to expect our fiscal year-end inventory to be roughly flat compared to our fiscal '24 ending balance. Our cash position was $531 million, which is after the payment of our legal settlement during the second quarter. And we had no borrowings under our $1.1 billion revolving credit facility.
Next, let's turn to our fiscal '25 outlook. Our expectation that full year revenue will decline at a low double-digit rate has not changed. We also reiterate our outlook for a 14% to 16% revenue decline in North America, flat revenue in EMEA and a high single-digit decrease in APAC.
Given our outperformance in the second quarter, we have increased our outlook for gross margin and now expect an improvement of 125 to 150 basis points for the full year which is better than our prior outlook improvement range of 75 to 100 basis points. This anticipated increase in our gross margin is driven by reduced promotional and discounting activities in our DTC business, which continue to benefit our average selling price, along with the actions to improve product costs.
This implies that second half gross margin is expected to expand at a lower rate than in the first half, which is driven by tougher comparisons with the prior year as well as the impact of some inventory cleanup actions later in the year as we prepare the market for product introductions in the fall/winter '25 season.
Concerning SG&A, excluding the litigation settlement expense and related insurance recoveries and the midpoint of estimated transformation expenses related to our restructuring plan adjusted SG&A is expected to decline at a low to mid-single-digit rate, which is unchanged relative to our prior outlook despite larger-than-anticipated declines over the first two quarters of the year. This also incorporates our recent decision to reinvest some of our first half gross margin upside in the brand-building investments ahead of upcoming pivotal seasons and the timing shift of marketing into the second half.
As a result, roughly half of our second quarter adjusted operating income outperformance will be invested in incremental marketing later this year, while the remaining half is reflected in the increase in our adjusted operating income outlook, which we have raised by $25 million versus our prior call. Therefore, we anticipate that adjusted operating income will reach $165 million to $185 million for the year. Incorporating all this into the bottom line, we expect adjusted diluted earnings per share to be $0.24 to $0.27, up about $0.05 at the midpoint from our prior outlook.
Next, I'd like to provide context for our third quarter of fiscal '25, where we expect revenue to be down approximately 10%, which assumes continued pressure in North America and ongoing proactive strategies to reduce promotional activities in our DTC businesses. This points to Q4 revenue being more pressured than Q3, which is primarily related to some timing differences in Q3, Q4 flow this year versus last year within our North America and APAC wholesale businesses, along with a more difficult prior year Q4 comp in our North America Factory House business and some developing FX headwinds driven by the recent strengthening of the US dollar.
Third quarter gross margin is expected to be up 150 to 175 basis points due to supply chain benefits resulting from lower product costs, favorable FX and pricing benefits related to reduced discounting and promotions in our direct-to-consumer business.
As mentioned earlier, a significant shift in the timing of marketing investments will cause our adjusted SG&A expenses to increase in the second half compared to last year, particularly in the third quarter when expenses should be up at a mid-single-digit percentage rate. This brings us to an expected third quarter adjusted operating income of $20 million to $30 million and $0.02 to $0.04 of adjusted diluted earnings per share.
In closing out today's prepared remarks, our work to reconstitute the Under Armour brand continues to gain traction after another quarter of outperformance. Our teams are executing our strategies, focusing on the dimensions of our business that will make a difference in our brand strength and premium positioning.
Though we still have much work to do, we're encouraged by our early progress in this journey, and we're confident that with our strengthened leadership team, improved execution, clear alignment and prioritization and renewed energy as an organization, we will continue to build momentum toward long-term sustainable and profitable growth.
With that, we'll open it up for questions. Operator?

Question and Answer Session

Operator

(Operator Instructions)
Simeon Siegel, BMO Capital Markets.

Simeon Siegel

Thanks. Hey, everyone. Good morning. Congrats on the ongoing progress. Really great to see you. So Kevin, I know it's only been a few months, anything further you'd share on what Eric's bringing -- in bringing to the team so far? And then Kevin or Dave, just congrats on the gross margin improvement, that's been great, and obviously, a nice validation of your strategy. How are you thinking about future gross margin opportunity?
And then maybe putting that in context of that back half guide, you gave the 3Q after the healthier profit, it does look like the total outlook. I think the total profit looks to be very light in the back half of the year. So any further context you could give on that, if it's anything beyond timing. Thank you.

Kevin Plank

Yeah, I'll take the first and let Dave pile on gross margin. But yes, it's pleasant to see. And I think one of the indicators when we had so many things going in a couple of different directions, a good way to judge how we're doing with the business and the progress in the reset. But Eric has been terrific.
Number one, he's an experienced global executive. It's just been a great addition to the team and really for them he's someone that coming from the industry. He not only speaks to our language. He speaks to our dialect. So the learning curve has been very small. We also deal with a good confident executive. It's great to see. And so I think that's been really seamless.
And coming in the mandate for Eric was really in three parts. Its title was brand strategy. And first of all, within that, was the strategy and for us to coordinate the strategic business plan for the organization and just lock us up between brand, financial and commercial objectives because while we've had these things in place, I think our refined lens on them has been important.
The second thing I asked Eric to help with is really the operating model, which is again, I'll use the word refining our category management structure and enhancing our go-to-market where we can just be more coordinated. And whether that's just here in the US across channels, be it wholesale or a retailer or what we're doing in our factory house or online as well as what we're doing in other regions and coordinating. So we feel like one large brand versus a lot of small pieces. And so there'll be more to come on that.
And then in marketing. It's one thing about this business where really, the primary focus was Eric to help us in the marketing component. We've got a $0.5 billion plus budget for marketing, but it sure doesn't feel that way. And so that's priority number one. I mentioned in my prepared remarks, our ambition, our plan is to build a -- and to bring on a major campaign that we'll have in 2025. And that's just looking and saying, it's not that we don't have enough money. We just don't like how we've been spending it.
And so us really getting surgical in the way that we're looking at that is important. And all this to contextualize this underdog persona as we head towards what sort of circling fall/winter '25. And this isn't a wait and see, and this isn't there's going to be some line that we cross in fall/winter '25. There's several proofs of life that you'll see along the way from product and from brand and story, but it gives us a really good target, and we're pleased of where we are right now. So taking the room in our marketing to build a comprehensive campaign.

David Bergman

Relative to the gross margin, longer term, there's nothing structurally prohibiting us from driving more towards 50% over time. When you think about some of those longer-term tailwinds for next year and beyond, continued lower promotions as we continue this reset play.
Higher mix of DTC percentage, including higher ASPs and better segmentation, et cetera. There will be a continued headwind, we believe, with footwear growth outpacing apparel growth longer term, but we're okay with that. And relative to the front half, back half, relative to gross margin, and there's really a couple of different things. There's gross margin, there's SG&A.
But gross margin, Q2 is generally our highest gross margin quarter to start just as our brand. And then when you think about the back half, we normally have more seasonal promotions in Q3. So that's something that's obviously coming into play here. And then also, there are some supply chain headwinds in the back half with a little bit more ocean freight pressure and some tougher prior year comps. So all of that is kind of built into our back half gross margin profit. And you can understand then why front half versus back half gross margin is a little bit different.
But maybe taking that a step further in how it translates all the way down to operating income, there's even a bigger differential within SG&A spending. Here, adjusted SG&A, we're thinking that we're going to be up year-over-year compared to a 10% decline in the first half, and you kind of asked why is that.
But the second half, obviously, does not include a $27 million insurance recovery that we saw in Q2. And then the marketing is a really big piece. We're actually planning roughly $40 million more of marketing investments in the back half of this year versus the front half as we kind of ramp up around key commercial moments and also, as Kevin mentioned, reinvesting some of the profitability upside.
So when you kind of add that gross margin timing difference and you add the SG&A differences, it kind of points to the front half of our year for this fiscal year anyway. We're earning about 90% of our operating income for the full year. So it is a little bit interesting, there's a lot of pieces there, but I just wanted to try and help make sure everybody grasp that.

Simeon Siegel

Great. Thanks a lot, guys. Have a good holiday.

Operator

Jay Sole, UBS.

Jay Sole

Great. Thank you so much. A lot of exciting things to talk about. But Kevin, I want to ask you about a comment you made that you're getting strong feedback on new products. Can you just elaborate that on that a little bit? Tell us a little bit more about these new products, tell us more about the feedback you're getting? And if you give us a sense of like how retailers are really responding in terms of their orders, that would be super interesting. Thank you.

Kevin Plank

Yeah. Thank you, Jay. We've got -- look, we've got work to do. And so I think right now, we're running a bit of a better business, but what's difficult in our industry with an 18-month go-to market typically is we still have time before we'll start seeing a lot of these things hit the market, be it the product, especially in the marketing, of course. And as I mentioned, there's plenty of proof of life. We've got, I think, our pipeline right now with what you've seen our product team, John Varvatos here on our entire group plus this incredible group of experts that we've had here in place at UA.
I think our product pipeline is really as healthy as I've seen it. We've got a lot of things that are exciting. We've got some drops that are coming for Q1 of calendar '25. But then as I said, it's really going to be an anchor around fall/winter '25. And so we're going to give you a lot more color at our Investor Day coming up December 12 as well.
So we want to make sure that people make a point to come see and visit us there. It will be somewhat qualitative in what we're doing is going through the topics of talking about the business. But we've got an update to our slip speed product that's coming in the first quarter, which should be really exciting. And then again, I think that we're doing a good job in some of the places we're winning.
It's the basics. It's UA compression and base layer that's working for us right now. Unstoppable is a franchise that you've heard us talk about consistently. The Vanish Men, as I mentioned in the prepared remarks as well as outerwear is doing pretty well for us too.
So what we found is I feel like we've got this organization where the pipes are laid not only to the product but making sure that we're getting the shelf space and the relationships that we have with retailers as well, making sure that we're sequencing also is doing a good job with the way that we can tell the stories of those products on e-com, but making sure we're spending -- making $1 spend like three as we say here at UA and really getting the bang for the buck when it comes to making it a compelling story. And that's why we've just going through product and making sure that product and story have this function.
I mentioned product marketing and commercial working together. But something as simplistic as I've said before on the call, is what it is, what it does and how it makes you better. Going to retail at times, we've become a bit of a brand that's being sold on price. And there's just so much more to the incredible products that we make.
And so without story there, you're just selling shirts and shoes in the world doesn't need another capable parallel footwear brand. The world needs hope and that's what we think Under Armour can be. And so that's really -- I'm not sure sort of where this inflects for the business. But one thing I can tell you is that we don't know exactly what it is, but it's not too distant of when this brand in flex, and that will be the real metric that we're looking to build forward on.

Jay Sole

Yeah. I understand. Sounds great. Thank you so much.

Operator

Bob Drbul, Guggenheim.

Bob Drbul

Hi. Good morning. Just on North America, Kevin, when you look at where North America is in the reset, how is it working? And do you expect North America to grow in FY26?.

Kevin Plank

Yeah. Thank you, Bob. We're not looking at '26 just yet but let me tell you a few things that we're thinking, and we do know about North America. We've got work to do in this market, but we also have a brand that has great affinity. And I don't believe the consumers' not of us. We just have to give them a reason to want to engage with us again.
Probably one of the things I'm most proud of in the first seven months of being back in the CEO chair is identifying and defining for our own team as well as beginning to for our consumers of who we are and who we stand for, which is this underdog thematic that you'll begin to see come through. And that's not meant to be a little translation but more the directionally of what and who we are because it's just frankly authentic, and we think we're the only ones who could hold that position.
But we think it's going to mean something here in the US, especially. And then we'll see that it gives the ability to set the tone for both EMEA and APAC as well. This revenue step-down that we've done, it's allowed us to test some things. We've reset our e-commerce business. And as a part of that, you saw the significant benefit it's had to gross margin. This underscores for us that there was a test.
The world wants Under Armour. We're a brand that's earned the right to exist and that we're a premium brand. And so as long as we sort of clear out some of the noise that we've had around some of the lower ASP products and get ourselves to a more full-price front-foot tenure, I think you'll see the strength from us. But that's not going to happen from wishful thinking either just a fancy ad campaign. It means better products.
And so what the team has done from taking us from competing on price, competing on science and design, but this is going to take some time. As I mentioned, there was probably several proofs of life that you'll be able to see. Some of them may be a lottery ticket, but you never know. It's why I like to say that success in mediocrity are typically next to our neighbors. So how far aware are you, but we have some product we really like that's coming in.
As I mentioned, that slip speed in the first quarter is really powerful. This neolast expression that we have coming, it's going to be really exciting. And then sportswear for UA is also a huge opportunity where you'll continue to see our bent there really begin to grow. But the shift to more premium. One thing I want to be clear on is, I don't think that we -- we don't have to stop selling good level in order to premiumize this brand. We just need to focus more on some of our better and best level product.
And so I think a lot of the things with -- from the product and the story side and then, of course, the relationships at the accounts, what we're doing with our own e-com and our own store base as well matters. But some of these bigger structural things, as I mentioned, what Eric is doing in adding to an incredibly talented executive team, I feel that we've assembled.
Category management is going to make a difference to SKU rationalization, eliminating 25% of our SKUs over the next 12 to 18 months. It just gives us just clear focus and makes it easier for the consumer, all that with a healthy tension on cost management, of course. And so we want to elevate the brand experience. We want to do that in our factory houses where I think there's some pretty significant margin opportunity for us there. Our brand house is, of course, and then just these relationships with wholesalers.
I said in my prepared remarks this idea of ensuring that our strategic partners know their strategic partners, that extends beyond just our customers. It goes to our factories that goes through our vendors. It goes really across the board for this brand. So I think that North America is that, as we're stabilizing this ship, we think that there's great upside for Under Armour. But we're incredibly optimistic and we like where we are. We like our team. We like the position we have. We think we've got a pretty good shot.

Bob Drbul

Great. And if I could just jump in with one more. I think Dave mentioned additional marketing dollars in the second half. Like what will those dollars be spent on?

Kevin Plank

Thanks, Bob. Let me take that. We're thrilled with the overdrive of $50 million. It's big money, but we're going to split that and give $25 million of it to the bottom line. And then we're also going to be putting that across the different regions with EMEA, APAC and the Americas. I mean this is going to be a lot of top of funnel brand building in Europe, where I think all three regions are pretty much in different places as well. Europe is probably our strongest region right now.
We've already got a campaign that's in place and inflated so we're going to be bolstering that. We're going to be a little more defensive than APAC, which is an area that we think that we're really going to dig in. And I'm going to spend more time on China and our business there as well in -- beginning in the first quarter as we turn into the new year.
And then here in the US, we're going to put a portion of that towards some of our top of funnel. And again, with the fiscal year going through March as we roll into fiscal year '26, this underdog positioning that we have, but there's a lot of great things that happened in the first quarter 2025, specifically the 2025 NBA All-Star game, which is going to be held in San Francisco, which should be like a homecoming for Steph, who'll be hosting that effectively. Super Bowl, March Madness.
And so there's a lot of places where, again, we can just start getting this perspective of the brand, which is maybe a bit of a new Under Armour, but something which feels incredibly natural and just who and what we are.

Bob Drbul

Thank you.

Operator

Paul Lejuez, Citi.

Paul Lejuez

Hey. Two questions. First, as you guys further embrace the underdog persona, I think what you called it, Kevin, what does it mean for how you're going to use professional athletes as brand ambassadors going forward? Should we expect any change there? And then second, just curious if you can just give an update on where do you think inventory levels and promotional levels are in each of your major markets right now and as you look out to holiday?

Kevin Plank

Yeah. Thanks, Paul. I think that this persona is something which this isn't lost on that pros don't applied to it. And of course, the changing landscape, what NIL means and what's happening with sports marketing and sports marketing assets. The unique aspect of UA when we talk about being a sports house, it means that we sort of run the spectrum from American football to football in Europe to basketball.
And there's probably no better example of what I described as that underdog athlete is those that weren't given all of God's gifts, but somehow have to work a little harder and train a little more and apply that rule of 10,000 and probably Stephen Curry is the one who's changed the game of basketball by doing exactly that.
He didn't come out and he wasn't the tallest the biggest or the fastest but he just -- he took a focus on something that allowed them to compete there. So we think we can do this both high and low with elite levels like a Stephen, all the way down to the more personal stories that you'll see at the NIL collegiate level as well.
And so I'm not sure if you asked me to line up all those that feel like they're going through a hard time right now, how to overcome something pretty difficult and try to get to where they are. That's a pretty consistent feeling is that just about everybody feels that way. And so we think we're going to tap into that, and we think it's incredibly true and authentic to who and what this brand is as well. So we think there's a bit of an unlock for us there.

David Bergman

And this is Dave. Relative to the inventory question, I think what we're seeing is the industry inventory levels are definitely a little better positioned today, though I think there's still some retailer conservatism out there that's kind of lean towards a little softer demand. And it's also still a very intense competitive environment. So we're still seeing a little bit of retailer conservatism remaining and therefore, kind of reluctance to kind of go after big increases in orders, et cetera.
But as far as where we see ourselves, we think the overall size of our inventory is good right now in the market and what we have in our DH. We expect that level to fall a little bit more as we close out the year. And on the composition of our inventory, the majority is current season with active demand. So the aging of our inventory is in good shape.
And there are significant differences by region and product type, but they're not really much to call out as far as where we stand as far as aging or anything like that. So we continue to manage well. We think we're in a good spot. We're going to start working further on inventory turns in the future years, but we're pretty comfortable where we are right now.

Paul Lejuez

Got it. Thank you. Goodluck.

Operator

Brian Nagel, Oppenheimer.

Brian Nagel

Hey, guys. Good morning. Thanks for taking my question. So a couple of questions. First off, I guess, within the investment community, tariffs are now another hot topic. So any thoughts there from Under Armour from a sourcing perspective or how -- to what extent you -- how you would be able to manage any increase in tariffs?
And then second, I guess, bigger picture. Kevin, you talked about in your comments, just the pushback to wholesale and reengaging with your wholesale partners. Kind of -- I know it's early, but where are we in those conversations? And how are some of those initial conversations going? I mean, I guess the question I'm asking is you're talking to the source of others, what is that they're really looking for? What timetable from Under Armour?

David Bergman

Hey, Brian, this is Dave. I'll jump in on the tariffs. As we're sitting here today, obviously, we've got the election results, and we're going to keep an eye on how that kind of unfolds. It will be interesting to see how things develop with whether we still have a split congress or not. I think that's really going to impact some things if it goes one way or if it's, let's say, split.
And we're going to continue to monitor it. Obviously, there could be some higher tariffs. There could be some US duty implications that could impact our cost of goods sold and gross margin and a little bit with income tax expense. But it's something that we were prepared to manage pretty well before. We'll continue to manage it as best we can going forward. So right now, we're not anticipating any real sizable impacts, but it's something we're going to keep monitoring. Kevin, if you want to jump on the wholesale partners?

Kevin Plank

Yeah. Thanks, Brian. I think that I've had a -- it's interesting when you talk to our accounts, is they're generally so happy and looking for partners that can break through. I mean you got to remember, a lot of the people we do business with, they've had. The majority of their open to buy, like greater than 40%, 50%, 60%. It has typically been dominated by one brand. So when they say they're rooting for you, they really mean it. But I imagine they say that lots of partners.
So what we have to do is we have to find product that cuts through. And I've got to say, in my first seven months, I've had the benefit of being everywhere from across Europe, from Manchester to Amsterdam to London, across Latin America, across Asia as well as taking in some football games as well as going to see our key partners and customers that we have here.
So there has been -- no mold has been growing underneath of our feet. We are certainly moving and making sure that we're sitting down and talking to customers. We're also with our new headquarters, we're also been inviting a lot of people here to show them to be able to we play a great home game and let people feel what's happening with this brand because it's hard to say is that as I said, the brand will inflect sooner than the business will inflect. And you can start to feel that.
I think that between you seen in the product teams and now with Eric coming on board to be able to unlock that product and story aspect as well as what Curry has been doing here in North America with our partners. We just want to let them know that Under Armour is open for business. Again, that we are ready to listen to their feedback and input. But let's be clear, we have a point of view. We bring a point of view as a brand that's incredibly unique. Everything performs
Everything does something, every product is meant to help you get better. And so whether that's the performance products we put on field or whether it's us entering a category like sportswear, there's a differentiator that makes it UA. And we think that, that, with the technical components of the product along with the benefits that we're able to story tell but making sure because I don't think our story has been told either, a, who this brand is or b, what the products do. We're going to do a much better job of that.
And so these retailers are rooting for us and we feel an obligation to do a good job for them. We've got a long-standing history and -- but we don't have as much shelf space as we once had, and so it's our job to earn that season by season. And we feel really good about what the future looks like. Unfortunately, it's not going to happen all at once, but we are certainly in this fight.

Brian Nagel

All right. I appreciate the color. Thank you.

Operator

John Kernan, Cowen. Pardon me, John, your line may be muted.

Lance Allega

There were two on there, operator, maybe try the second one. There were two in the queue under John. I'm not sure what happened.

Operator

(Operator Instructions)

Lance Allega

Yeah. We'll go ahead and conclude our call on that then. And John, if you're listening and can't get in, we'll give you a follow-up call on that. I appreciate it, buddy. So thank you, everyone, for joining us today on our second quarter fiscal 2025 call. Much appreciate it.

Kevin Plank

Terrific. Thanks, everyone.

David Bergman

Thank you.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.