TLDR
- Under Armour cut its full-year revenue outlook to a mid-single-digit decline, worse than its prior “slight decline” forecast
- Q1 revenue fell 3% to $1.1 billion, in line with Wall Street estimates
- North America revenue dropped 9% to $609.8 million in the quarter
- UAA stock fell as much as 7% in early trading, settling around 3% lower at $6.22
- Adjusted EPS of 5 cents beat analyst expectations of 2 cents
Under Armour stock was trading around $6.22, down roughly 3%, after the company cut its annual revenue outlook on Friday.
The sportswear brand now expects full-year revenue to decline at a mid-single-digit percentage rate. That is a step down from its earlier forecast of just a “slight decline.”
CEO Kevin Plank said traffic trends weakened as the quarter progressed, particularly in North America and parts of Asia Pacific. The company responded by stepping up promotional activity to drive sales.
UNDER ARMOUR $UAA Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.1B (Est. $1.11B) 🔴; -3% YoY
🔹 Adj. EPS: $0.05 (Est. $0.02) 🟢
🔹 Adj. Operating Income: $52.4M
🔹 Gross Margin: 54.1%; +590 bps YoYFY27 Guide:
🔹 Adj. EPS: $0.08-$0.12 (Est. $0.11) 🟡
🔹 Operating Income: $140M-$160M… pic.twitter.com/zrQG2aCVEF— Wall St Engine (@wallstengine) August 7, 2026
“Given what we’re seeing today, we’ve taken a more cautious view of revenue for the balance of the year,” Plank said on a call with analysts.
Q1 revenue came in at $1.1 billion, down 3% year over year and roughly in line with Wall Street estimates. North America, the company’s largest market, saw revenue fall 9% to $609.8 million.
Despite the soft top line, Under Armour did beat on the bottom line. Adjusted earnings came in at 5 cents per share, topping analyst expectations of 2 cents.
The company also swung to a net profit of $545,000 in Q1, compared to a loss of $2.61 million in the same period a year ago.
Tariffs and Competition Adding Pressure
CFO Reza Taleghani flagged that the consumer environment is expected to remain challenging, especially in North America and parts of Asia Pacific.
Morningstar analyst David Swartz put it plainly: “It’s a difficult sportswear market right now. The tariff situation and other economic factors are not helping.”
The profit outlook includes an approximately $70 million benefit from tariff-related refunds under the International Emergency Economic Powers Act, and a roughly $35 million headwind tied to the Middle East conflict.
Under Armour has also accumulated $266 million in restructuring and transformation costs so far, with the plan expected to wrap up by year end.
Turnaround Still a Work in Progress
Plank, who returned as CEO in 2024, has been trimming the product lineup by around 25% and pushing into higher-priced items in training, running, and team sports categories.
New launches include the Surge 5 and Radiant TR training shoes, Leadoff Icon Mid baseball cleats, and a range of jackets and hoodies targeting younger Gen Z consumers. Prices range from around $30 to $275.
Plank said the business is fundamentally stronger, but acknowledged the core challenge: “How do we turn a healthier business into stronger consumer demand?”
Swartz offered a more skeptical view: “There isn’t much evidence that its turnaround efforts are having a significant impact.”
Despite Friday’s drop, UAA stock is still up about 18% year to date. For the full year, Under Armour maintained its adjusted EPS guidance of 8 to 12 cents per share, with analysts currently forecasting 11 cents.
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