Under Armour Reports First Quarter Fiscal 2026 Results

Under Armour, Inc., headquartered in Baltimore, Maryland, has released its unaudited financial results for the first quarter of fiscal 2026, which ended on June 30, 2025. The company reports its financial performance in accordance with GAAP and includes non-GAAP financial measures for additional insights.

Financial Highlights

Under Armour reported a revenue decline of 4% to $1.1 billion for the first quarter of fiscal 2026. The gross margin increased by 70 basis points to 48.2%, primarily due to favorable foreign exchange, pricing, and product mix. However, the company faced a net loss of $3 million, with an adjusted net income of $9 million. Diluted loss per share was $0.01, while adjusted diluted earnings per share stood at $0.02.

Business and Operational Highlights

Revenue from North America decreased by 5% to $670 million, while international revenue saw a 1% decline to $467 million. Notably, revenue in EMEA increased by 10%, whereas Asia-Pacific and Latin America experienced declines of 10% and 15%, respectively. Wholesale revenue decreased by 5%, and direct-to-consumer revenue fell by 3%. Apparel revenue decreased by 1%, footwear revenue declined by 14%, and accessories revenue increased by 8%.

Strategic Initiatives and Corporate Developments

Under Armour's Fiscal 2025 Restructuring Plan, announced in May 2024, aims to improve financial and operational efficiencies. The plan is estimated to cost between $140 million and $160 million. By the end of the first fiscal quarter of 2026, the company had recorded $71 million in restructuring and impairment charges and $39 million in other related transformational expenses.

Management's Perspective

Under Armour President and CEO Kevin Plank expressed satisfaction with the quarterly results, emphasizing the company's focus on brand strength, premium products, and operational discipline. Plank highlighted the company's strategic plan to enhance brand positioning and increase average selling prices through innovative offerings.

Future Outlook

For the second quarter of fiscal 2026, Under Armour expects revenue to decline by 6% to 7%, with a low-double-digit percent decrease in North America and high-single-digit percent growth in EMEA. The company anticipates a gross margin decline of 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix. Operating income is expected to range from a $10 million loss to breakeven, with adjusted operating income projected between $30 million and $40 million. Diluted loss per share is expected to range from $0.07 to $0.08, with adjusted diluted earnings per share anticipated between $0.01 and $0.02.

SEC Filing: Under Armour, Inc. [ UA ] - 8-K - Aug. 08, 2025