Companies

Under Armour's revenue declines in the second quarter

Nov 13, 2026 United States

The US-based sportswear company reported a 7% decline in revenue in the second quarter of the 2027 financial year, due to lower sales across most regions and product categories

“We delivered against our revenue expectation and exceeded our operating income outlook. As we progress in this transformation, we are driving greater efficiency across our business, sharpening our product offering, and amplifying global marketing to strengthen our brand and improve financial performance”, commented Kevin Plank, Under Armour President and CEO.

Second-Quarter Results

In the second quarter of the 2027 financial year, which ended on the 30^th of September, the company recorded a total revenue of 1.2 billion US dollars. This represents a 7% decline compared to the same period last year.

During this period, revenue in North America fell by 7% year-on-year to 737 million US dollars, while international revenue fell by a similar amount to 509 million US dollars. Within the latter, EMEA revenue fell by 9% (down by 8% in constant currency), while Asia-Pacific revenue fell by 9% (down by 12% in constant currency). Conversely, Latin America revenue increased by 3% (down by 4% in constant currency).

Compared to the second quarter of the 2026 financial year, revenue from apparel decreased by 6% to reach 880 million US dollars, revenue from footwear decreased by 11% to reach 234 million US dollars, and revenue from accessories decreased by 7% to reach 105 million US dollars.

In the second quarter of this year, Under Armour’s gross margin declined by 30 basis points year-on-year, standing at 47.0%. This was due to unfavourable foreign exchange effects, changes in the sales mix of channels and regions, and pricing pressures. However, these factors were partly offset by supply chain efficiencies and a more favourable product mix.

The company’s selling, general and administrative expenses fell by 4% to 557 million US dollars, primarily due to reduced marketing costs and prudent spending. Operating income was 15 million US dollars, compared with 17 million US dollars the previous year. However, excluding transformation expenses, restructuring charges, and the litigation reserve adjustment, adjusted operating income decreased by 53.3% to 25 million US dollars.

Under Armour’s net loss narrowed significantly in the second quarter to 0.4 million US dollars, compared with 18.8 million US dollars in the same quarter of the previous financial year. Adjusted net loss was 2 million US dollars.

Full-Year Outlook

For the 2027 financial year, Under Armour continues to expect a decline in revenue at a mid-single-digit rate.

However, it now forecasts an increase in gross margin of 170 to 220 basis points, down from a previous estimate of 220 to 270 basis points. This reflects higher freight costs, inventory management actions, and pressures from foreign exchange rates.

The company’s full-year operating income is now expected to be between 99 and 119 million US dollars, up from a previous forecast of between 96 and 116 million US dollars. Meanwhile, adjusted operating income is still expected to be between 140 and 160 million US dollars.

Image Credits: about.underarmour.com

United States Companies Quarter Results Results Sportswear Under Armour