Under Armour | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 1.098 B

Revenue: As of FY2027 Q1, the actual value is USD 1.098 B, missing the estimate of USD 1.109 B.

EPS: As of FY2027 Q1, the actual value is USD 0.

EBIT: As of FY2027 Q1, the actual value is USD 57.38 M.

Financial Review for the Quarter Ended June 30, 2026

Segment Revenue

• Total revenue decreased 3 percent to $1.1 billion, or down 4 percent on a constant currency basis.
• North America revenue declined 9 percent to $610 million.
• International revenue increased 5 percent to $490 million, or up 2 percent on a constant currency basis.
  • EMEA revenue increased 12 percent (up 10 percent constant currency) to $278,680 thousand.
  • Asia-Pacific revenue decreased 7 percent (down 10 percent constant currency) to $152,586 thousand.
  • Latin America revenue increased 8 percent (up 1 percent constant currency) to $58,754 thousand.
• Wholesale revenue decreased 2 percent to $638 million.
• Direct-to-consumer (DTC) revenue decreased 6 percent to $437 million.
  • Owned-and-operated store revenue declined 3 percent.
  • eCommerce revenue decreased 12 percent, representing 29 percent of total DTC revenue.
• Apparel revenue decreased 2 percent to $734 million.
• Footwear revenue declined 8 percent to $245 million.
• Accessories revenue decreased 4 percent to $96 million.

Operational Metrics

• Gross margin increased 590 basis points to 54.1 percent, primarily due to refunds from the recovery of International Emergency Economic Powers Act (“IEEPA”) tariff costs.
• Selling, General and Administrative (SG&A) expenses increased 2 percent to $543 million.
• Excluding $2 million in transformation expenses, adjusted SG&A increased 4 percent to $541 million.
• Restructuring charges totaled $4 million.
• Operating income was $47 million.
• Excluding transformation and restructuring charges, adjusted operating income was $52 million.
• Net income was $1 million.
• Adjusted net income was $21 million, excluding transformation and restructuring charges.
• Inventory decreased 3 percent to $1.1 billion.

Cash Flow

• Net cash provided by operating activities was $109,137 thousand for the three months ended June 30, 2026.
• Purchases of property and equipment were - $14,600 thousand.
• Net cash provided by investing activities was $585,400 thousand.
• Net cash used in financing activities was - $607,064 thousand.

Unique Metrics

• Cash and cash equivalents totaled $396 million at quarter-end.
• $200 million of borrowings were outstanding under Under Armour, Inc.’s $1.1 billion revolving credit facility.
• Under Armour, Inc. recorded $4 million in restructuring charges and $2 million in transformation-related SG&A expenses, totaling $6 million under its Fiscal 2025 Restructuring Plan in the first quarter.
• To date, the company has incurred $266 million in total restructuring and transformation costs, including $116 million in cash and $150 million in non-cash charges, with total program costs anticipated to be approximately $305 million.
• The Fiscal 2025 Restructuring Plan is expected to be substantially complete by December 31, 2026.
• Total company-owned & operated doors were 438 as of June 30, 2026, compared to 442 in the prior year.
  • North America total doors were 196, compared to 195 in the prior year.
  • International total doors were 242, compared to 247 in the prior year.

Updated Fiscal 2027 Outlook

Under Armour, Inc. anticipates revenue to decline at a mid-single-digit percentage rate due to softer demand, particularly in North America and Asia-Pacific. Gross margin is still expected to increase by 220 to 270 basis points, while GAAP SG&A expenses are now projected to decrease at a high-single-digit rate. Operating income is maintained at $96 million to $116 million (adjusted operating income $140 million to $160 million), and diluted loss per share is now expected to range from - $0.01 to - $0.05.