Key Takeaways
Under Armour Inc. (NYSE: UAA) saw its shares fall more than 12 percent after reporting a fourth-quarter loss and forecasting a sales decline for fiscal 2027, suggesting its turnaround efforts require more time to gain traction.
"Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand," Kevin Plank, President and CEO of Under Armour, said in a statement.
The sports apparel company reported a 1 percent dip in revenue to $1.2 billion for the quarter ended March 31, with an adjusted loss of $0.03 per share. The results were mixed against Wall Street expectations, which had estimated a loss of between $0.02 and $0.03 per share. A 7 percent revenue decline in its primary North America market overshadowed a 10 percent increase in international sales.
For the full fiscal year 2026, Under Armour's revenue decreased 4 percent to $5.0 billion, with adjusted earnings per share of $0.12.
Looking ahead, the company’s outlook further concerned investors. For fiscal 2027, Under Armour expects revenue to decline slightly year-over-year. It guided for adjusted diluted earnings per share between $0.08 and $0.12. The company noted this forecast reflects continued external cost pressures and includes an anticipated benefit from tariff-related refunds.
The weak guidance for the year ahead shows the brand's reset has yet to reverse its sales trajectory, particularly in its home market. The continued slide in North American sales remains a significant hurdle for the company's recovery.
This article is for informational purposes only and does not constitute investment advice.
