David E. Bergman
CFO at Under Armour
This improvement was driven by reduced freight and product costs and the benefits of lower discounting in our DTC channel, especially in e commerce. Full year SG and A expenses rose 8% to 2,600,000,000.0 Excluding a $266,000,000 litigation settlement expense, approximately $31,000,000 in transformation expenses and a $28,000,000 impairment related to exiting our previous headquarters, adjusted SG and A expenses decreased by 2% to $2,300,000,000 This decline was primarily attributed to cost management initiatives, including benefits realized to date from our fiscal twenty twenty five restructuring plan. Operating loss was $185,000,000 and excluding transformation expenses, restructuring, impairment charges and litigation settlement expenses, adjusted operating income was 198,000,000 slightly ahead of our prior outlook of 185,000,000 to $195,000,000 Full year diluted loss per share was $0.47 and our adjusted diluted earnings per share was $0.31 which was above our previous outlook of $0.28 to $0.30 Moving into fiscal twenty twenty six and building on Kevin's remarks, it's important to recognize the plan we established before the announcement of recent tariff changes. As we enter the second year of our turnaround, we've made measured progress across our strategic, operational and financial objectives. Before the recent changes in trade policy, this translated into an expectation of a modest top line contraction for fiscal twenty twenty six as we continue to prioritize higher quality revenue and brand strength, while driving further gross margin expansion and getting back to leveraging our SG and A cost structure.
