Companies

Under Armour posts weak second quarter

Nov 13, 2025 United States

Despite modest international growth and early “signs of brand momentum in North America”, the US-based sportswear group posted a weak second quarter, marked by reduced profitability

“We delivered results ahead of our prior outlook this quarter and are encouraged to see signs of brand momentum in North America – an important milestone in our turnaround. With our strategy, operating model, and go-to-market approach firmly in place, we're staying disciplined and focused. The response from consumers and partners reflects this execution, driven by stronger product, sharper storytelling, and a renewed belief in the Under Armour brand”, commented Under Armour President and CEO Kevin Plank.

Second Quarter Results

In the second quarter of the 2026 fiscal year, the company’s revenue totalled 1.3 billion US dollars, a 5% decrease (or by 6% on a currency-neutral basis), as compared to the same period of the last fiscal year.

In North America, Under Armour’s revenue declined by 8% year-on-year to 792 million US dollars, whereas international revenue increased by 2% to 551 million US dollars. Within the international business, revenue increased by 12% (or by 7% on a currency-neutral basis) and by 15% (or by 14% on a currency-neutral basis) in the EMEA and Latin America regions, respectively. However, it decreased by 14% in the Asia-Pacific region.

From a segment perspective, on a comparable basis to the second quarter of the 2025 fiscal year, the apparel revenue decreased by 1% to 936 million US dollars, the footwear revenue decreased by 16% to 264 million US dollars, and the accessories revenue decreased by 3% to 113 million US dollars.

In the three months to the end of September, the company’s gross margin contracted by 250 basis points year-on-year to 47.3%. This was due to increased tariffs and an unfavourable channel and regional mix; however, gains from foreign exchange and pricing helped offset some of these impacts.

Under Armour recorded selling, general and administrative expenses of 582 million US dollars in the second quarter, which is an increase of 12% (or 9% on an adjusted basis) year-on-year. This increase was partly due to the absence of last year’s insurance recovery of 27 million US dollars, and partly due to increased marketing expenditure. The company also incurred restructuring charges of 32 million US dollars.

In May 2024, the company had announced a restructuring plan aimed at improving its financial and operational efficiencies.

In the second quarter of the current year, Under Armour recorded an operating income of 17.0 million US dollars, as compared to 173.1 million US dollars in the same quarter a year ago, and an adjusted operating income of 53 million US dollars.

Overall, the company incurred in second quarter net loss of 18.8 million US dollars, or diluted earnings per share of 0.04 US dollars, as compared to a net income of 170.3 million US dollars, or diluted earnings per share of 0.39 US dollars.

Fiscal 2026 Outlook

Under Armour expects a revenue decrease of between 4% and 5% for the full year, including anticipated declines in the high single digits in North America and the Asia-Pacific region, and an increase in the high single digits in EMEA. Diluted loss per share is expected to be between 0.15 and 0.17 US dollars.

Image Credits: retailtimes.co.uk

United States Companies Quarter Results Results Sportswear Under Armour