TLDR
- UAA stock dropped ~12-13% premarket after missing Q4 earnings estimates
- Adjusted loss of $0.03/share vs. analyst estimate of $0.02/share loss
- Revenue fell 1% YoY to $1.2 billion; North America sales dropped 7%
- Gross margin declined as tariffs, higher product costs, and pricing pressures bit in
- FY2027 guidance came in well below analyst expectations: $0.08–$0.12 EPS vs. $0.23 consensus
Under Armour posted a fourth-quarter earnings miss on Tuesday, sending the stock down around 13% in premarket trading to approximately $5.21.
$UA No mercy for Under Armour 🩸
EPS: $(0.03) vs $(0.02) est
REV: $1.171B vs $1.167B est🟥 -12.07% pic.twitter.com/UD8K4Qfzcd
— TrendSpider (@TrendSpider) May 12, 2026
The company reported an adjusted loss of $0.03 per share for Q4, missing the analyst consensus of a $0.02 loss. It was a small miss, but the market’s reaction was not.
Revenue for the quarter came in at $1.2 billion, down 1% year over year. That number actually edged past the Wall Street estimate of $1.17 billion, but it wasn’t enough to offset the weak bottom line and cautious guidance.
North America continues to be the soft spot. Revenue in the region dropped 7% to $641 million. International held up better, growing 10% to $539 million, but that wasn’t enough to plug the gap.
Wholesale revenue also slipped, falling 3% to $747.7 million.
Margin Pressure Piling Up
Gross margin was a notable sore point. On a reported basis, it fell 470 basis points to 42%. On an adjusted basis, the decline was 360 basis points to 43.1%.
The culprits: higher tariffs, increased product costs, pricing headwinds, and an unfavorable mix of regional sales. That’s a lot of headwinds hitting at once.
For the full fiscal year 2026, Under Armour reported revenue of $5.0 billion, down 4% year over year. Adjusted EPS came in at $0.12 for the full year.
The company also recorded a net loss of $496 million for FY2026, which included a $247 million valuation allowance on U.S. federal deferred tax assets.
CEO Kevin Plank framed it as part of a deliberate reset. “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,” he said.
Fiscal 2027 Guidance Falls Short
The outlook is where things really got difficult. Under Armour guided for FY2027 adjusted EPS of $0.08 to $0.12. The midpoint of $0.10 sits well below the analyst consensus of $0.23.
Revenue is expected to decline slightly year over year again in FY2027.
Operating income is guided at $96 million to $116 million. That range includes a $70 million benefit from expected tariff refunds, but it’s offset by $35 million in headwinds tied to the conflict in the Middle East and $30 million in additional marketing spend.
Those marketing investments are part of Plank’s broader push to strengthen the brand’s storytelling. Whether that translates into better results remains to be seen.
The company’s FY2027 guidance reflects a business still in the middle of a reset, managing external cost pressures while trying to rebuild brand momentum.
UAA was trading around $5.21 premarket Tuesday, down from $6.06 at the prior close.
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