Under Armour revenue falls 3% as North America demand softens

Under Armour reported fiscal first-quarter revenue of $1.10 billion, down 3% from a year earlier as North America demand weakened.

"By simplifying the business, we are operating with greater discipline and better positioned to protect profitability," President and CEO Kevin Plank said.

North America revenue fell 9% to $610 million, while international rose 5% to $490 million. Apparel declined 2%, footwear 8%, and accessories 4%. Gross margin expanded 590 basis points to 54.1%, largely on refunds tied to IEEPA tariff costs expensed in fiscal 2026. Operating income reached $47 million, and adjusted EPS was $0.05.

The company now expects fiscal 2027 revenue to decline at a mid-single-digit rate versus a prior outlook of a slight decline, citing lower expectations across North America, Asia-Pacific, and EMEA. It maintained its operating income outlook of $96 million to $116 million and adjusted EPS of $0.08 to $0.12, and still anticipates 220 to 270 basis points of gross margin expansion. Shares fell 0.96% to $6.21.

Under its Fiscal 2025 Restructuring Plan, the company recorded $6 million in charges in the quarter, bringing cumulative costs to $266 million of an expected $305 million. The plan is expected to be substantially complete by Dec. 31, 2026.

At June 30, 2026, Under Armour held $396 million in cash after settling its Senior Notes due 2026 at maturity on June 15, with $200 million outstanding under its $1.1 billion revolving facility. Inventory fell 3% to $1.1 billion.

Insider filings recorded net buying of 1,178,344 shares over 90 days, adding context to the maintained profitability outlook even as the revised revenue decline and elevated short positioning remain risks.

The maintained profit guidance shows management expects the restructuring to cushion softer demand, but the lowered revenue view points to persistent weakness in the company's largest market. Investors will watch the fiscal second-quarter results for signs that North America demand is stabilizing.

This article is for informational purposes only and does not constitute investment advice.