Under Armour, Inc. (NYSE:UAA) (NYSE:UA) shares fell after the company reported fiscal second-quarter 2026 results that beat Wall Street expectations but lowered its full-year outlook.
Adjusted EPS came in at 4 cents, topping the 2 cents estimate, while revenue of $1.33 billion beat forecasts of $1.31 billion.
Total revenue declined 5% year-over-year, or 6% on a currency-neutral basis. GAAP diluted loss per share was 4 cents.
Also Read: Under Armour’s 2026 Tariff Hit Threatens Turnaround Momentum
“We delivered results ahead of our prior outlook this quarter and are encouraged to see signs of brand momentum in North America – an important milestone in our turnaround,” said President and CEO Kevin Plank. “With our strategy, operating model, and go-to-market approach firmly in place, we’re staying disciplined and focused.”
Regional Performance And Channel Breakdown
North America revenue fell 8% to $792 million, while international sales rose 2% to $551 million, driven by 12% growth in EMEA and 15% in Latin America, partly offset by a 14% decline in Asia-Pacific.
Wholesale revenue decreased 6% to $775 million, while direct-to-consumer revenue fell 2% to $538 million. eCommerce sales declined 8% and accounted for 28% of DTC sales.
Product Category Trends
Apparel revenue decreased 1% to $936 million, footwear declined 16% to $264 million, and accessories fell 3% to $113 million. Gross margin contracted 250 basis points to 47.3%, mainly from higher tariffs and an unfavorable mix.
Costs and Profitability
SG&A rose 12% to $582 million, and adjusted SG&A increased 9% to $577 million. Operating income was $17 million, or $53 million on an adjusted basis. Net loss was $19 million, while adjusted net income totaled $15 million.
Under Armour ended the quarter with $396 million in cash and $200 million drawn on its $1.1 billion credit facility. It repurchased $25 million in Class C shares during the quarter, bringing total buybacks under its $500 million program to $115 million.
Outlook
For fiscal 2026, Under Armour expects revenue to decline 4% to 5%, with high-single-digit decreases in North America and the Asia-Pacific region, and high-single-digit growth in EMEA.
Under Armour issued a weaker fiscal 2026 outlook, guiding GAAP EPS of (17)–(15) cents versus the Street’s (7) cents estimate.
The company expects adjusted EPS of 3–5 cents, below the 6-cent consensus, and projects sales of $4.906 billion–$4.958 billion, roughly in line with the $4.958 billion estimate.
The company expects full-year gross margin to decline by 190–210 basis points, largely due to higher U.S. tariffs, though this will be partly offset by currency gains, improved product mix, and modest pricing.
To manage headwinds, the company plans to tighten SG&A, projecting mid-single-digit declines in adjusted SG&A for fiscal 2026 through reduced discretionary spending and more targeted marketing.
Leadership Update
Separately, Under Armour named Reza Taleghani as Executive Vice President and Chief Financial Officer, effective February 2026. He will succeed David Bergman, who will remain through the first quarter of fiscal 2027 to ensure a smooth transition.
“Reza brings a global perspective, strong financial expertise, and a strategic mindset that align perfectly with our goals for Under Armour’s next chapter,” said Plank. Taleghani joins from Samsonite Group S.A., where he has served as CFO since 2018.
Price Action: UA shares were trading lower by 2.38% at $4.305 at last check Thursday. UAA was down 2.28%.
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