Under Armour cuts FY27 sales outlook amid soft demand

During the 4th ended 30 June 2026, gross astatine Under Armour fell 3% year-on-year to $1.1bn, with income successful North America down 9% and Asia-Pacific declining 7%.

International gross proved much resilient, expanding 5% to $490m, driven by a 12% emergence successful the Europe, the Middle East and Africa (EMEA) portion and an 8% summation successful Latin America.

Wholesale gross declined 2%, portion direct-to-consumer income dropped 6%, including a 12% alteration successful eCommerce.

Under Armour president and CEO Kevin Plank said: "As we navigate a challenging user request environment, we proceed to marque advancement successful gathering a much focused Under Armour, contempt updating our full-year gross outlook."

Under Armour cardinal Q1 metrics

The company's gross margin, however, improved 590 ground points to 54.1%, chiefly owed to tariff refunds nether the International Emergency Economic Powers Act (IEEPA), which offset the antagonistic interaction of overseas exchange, determination mix, and pricing pressures.

Operating income for the 4th was $47m, oregon $52m excluding one-off translation and restructuring charges.

Net income stood astatine $1m, with adjusted nett income astatine $21m. Diluted net per stock were flat, connected a reported ground and $0.05 adjusted.

Inventory decreased 3% year-on-year to $1.1bn. As of the extremity of the quarter, the institution held $396m successful currency and maintained $200m successful borrowings nether its revolving recognition facility.

Under Armour incurred $4m successful restructuring and $2m successful transformation-related expenses successful the 4th arsenic portion of its ongoing 2025 Restructuring Plan.

Cumulative costs nether the program person reached $266m, with full programme costs present expected to beryllium astir $305m connected completion by the extremity of 2026.

Outlook for FY27

For the afloat 2027 fiscal year, Under Armour present anticipates gross to diminution astatine a mid-single-digit percent rate. This is simply a sharper driblet than its erstwhile outlook of a flimsy decline, which the institution attributed to softer request successful North America and Asia-Pacific.

The outlook for North America moved from a low-single-digit diminution to a mid-single-digit drop, and projections for Asia-Pacific and EMEA besides shifted from low-single-digit maturation to low-single-digit declines.

Despite these cuts, the institution has kept its erstwhile nett guidance unchanged.

Gross borderline is expected to emergence by 220 to 270 ground points, with astir 150 ground points of the betterment coming from first-quarter IEEPA tariff refunds.

After adjusting for these, borderline improvements are projected to stem from pricing actions, reduced discounting, and a much favourable income transmission mix.