Companies

Under Armour lowers full-year revenue outlook but holds profitability guidance

Aug 20, 2026 United States

The US-based company has lowered its full-year revenue forecast on soft consumer demand, while maintaining its adjusted profit expectations following a first quarter marked by falling sales but improved profitability

“As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook”, said Under Armour President and CEO Kevin Plank.

For the 2027 financial year, the company now expects a decline at a mid-single-digit percentage rate, compared with the previous forecast of a slight decline. This revised outlook is driven by weaker demand, particularly in North America and the Asia-Pacific region.

However, operating income is still expected to be in the range of 96 million to 116 million US dollars. Excluding expected transformation expenses and restructuring charges, adjusted operating income is still expected to be in the range of 140 million to 160 million US dollars, and the expectation for adjusted diluted earnings per share remains at 0.08 to 0.12 US cents.

“By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price”, added Plank.

First-Quarter Results

In the first quarter of the 2027 financial year, which ended on the 30^thof June, the company reported revenue of 1.1 billion US dollars. This represented a 3% decrease (or a 4% decrease on a constant currency basis) compared to the same period in the last financial year.

Revenue in the North American region declined by 9% year-on-year to 610 million US dollars during the period, while international revenue increased by 5% (or by 2% on a constant currency basis) to 490 million US dollars.

Within international markets, revenue in the EMEA region increased by 12% (or by 10% on a constant currency basis), revenue in the Asia-Pacific region decreased by 7% (or by 10% on a constant currency basis), and revenue in the Latin America region increased by 8% (or by 1% on a constant currency basis).

In terms of product categories, apparel revenue declined by 2% to 734 million US dollars compared to the first quarter of fiscal 2026, while footwear revenue fell by 8% to 245 million US dollars and accessories revenue decreased by 4% to 96 million US dollars.

In the first quarter of this financial year, Under Armour reported a year-on-year expansion in gross margin of 590 basis points to 54.1%. This was mainly due to refunds related to IEEPA tariff costs being expensed in fiscal 2026 but was partially offset by adverse effects of foreign exchange rates, regional and channel mix, and pricing pressures.

During the quarter, selling, general and administrative (SG&A) expenses rose by 2% to 543 million US dollars, reflecting targeted brand investments and continued disciplined operating expense management. Excluding 2 million US dollars in transformation expenses related to the fiscal 2025 restructuring plan, adjusted SG&A rose by 4% to 541 million US dollars.

The company reported an operating income of 47 million US dollars and an adjusted operating income (excluding transformation and restructuring charges) of 52 million US dollars in the first quarter, compared to 3 million and 24 million US dollars respectively in the same period of the previous year.

In the three months up to the 30^th of June, Under Armour recorded diluted earnings per share of 0.00 US dollars and adjusted diluted earnings per share of 0.05 US dollars. This compares with 0.01 and 0.02 US dollars respectively in the first quarter of the 2026 financial year.

Image Credits: about.underarmour.com

United States Companies Quarter Results Results Sportswear Under Armour