Under Armour slashes revenue outlook as fiscal first quarter sales decline

Under Armour Inc (NYSE:UA) slipped astir 2% aft the diversion apparel shaper reported fiscal archetypal 4th results that included an net bushed but somewhat weaker-than-expected gross and a much cautious full-year outlook.

Under Armour reported adjusted diluted net per stock of $0.05 for the quarter, up of the Wall Street statement estimation of $0.02. Revenue fell 3% to $1.1 billion, somewhat beneath the $1.11 cardinal expert estimate.

North American gross declined 9% to $610 million, portion planetary gross accrued 5% to $490 million. Within planetary markets, gross successful EMEA accrued 12%, portion Asia-Pacific declined 7% and Latin America accrued 8%.

Wholesale gross declined 2% to $638 million, portion direct-to-consumer gross fell 6% to $437 million. Within DTC, owned-and-operated store gross declined 3% and eCommerce gross decreased 12%.

By category, apparel gross declined 2% to $734 million, footwear gross fell 8% to $245 cardinal and accessories gross decreased 4% to $96 million.

Under Armour lowered its fiscal 2027 gross outlook, present expecting gross to diminution astatine a mid-single-digit percent complaint compared with its erstwhile forecast for a flimsy decline. The institution cited softer demand, peculiarly successful North America and Asia-Pacific.

North American gross is present expected to diminution astatine a mid-single-digit rate, compared with the erstwhile outlook for a low-single-digit decline. The institution besides present expects low-single-digit declines successful Asia-Pacific and EMEA, compared with erstwhile expectations for low-single-digit maturation successful some regions.

The institution maintained its full-year operating income outlook of $96 cardinal to $116 cardinal and adjusted operating income outlook of $140 cardinal to $160 million. Adjusted diluted net per stock is inactive expected to scope from $0.08 to $0.12.

"By simplifying the business, we are operating with greater subject and amended positioned to support profitability, portion inactive investing successful a sharper merchandise portfolio done clearer storytelling with the extremity of driving a much premium Under Armour that volition consistently gain request astatine afloat price," Under Armour CEO Kevin Plank said successful a statement.