Under Armour, yumuşak talep nedeniyle FY27 satış görünümünü düşürdü

Under Armour cuts FY27 sales outlook amid soft demand

Jangoulun Singsit

Mon, August 10, 2026 at 1:46 PM GMT+3 3 min read

During the quarter ended 30 June 2026, revenue at Under Armour fell 3% year-on-year to $1.1bn, with sales in North America down 9% and Asia-Pacific declining 7%.

International revenue proved more resilient, increasing 5% to $490m, driven by a 12% rise in the Europe, the Middle East and Africa (EMEA) region and an 8% gain in Latin America.

Wholesale revenue declined 2%, while direct-to-consumer sales dropped 6%, including a 12% decrease in eCommerce.

Under Armour president and CEO Kevin Plank said: "As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook."

Under Armour key Q1 metrics

The company's gross margin, however, improved 590 basis points to 54.1%, primarily due to tariff refunds under the International Emergency Economic Powers Act (IEEPA), which offset the negative impact of foreign exchange, regional mix, and pricing pressures.

Operating income for the quarter was $47m, or $52m excluding one-off transformation and restructuring charges.

Net income stood at $1m, with adjusted net income at $21m. Diluted earnings per share were flat, on a reported basis and $0.05 adjusted.

Inventory decreased 3% year-on-year to $1.1bn. As of the end of the quarter, the company held $396m in cash and maintained $200m in borrowings under its revolving credit facility.

Under Armour incurred $4m in restructuring and $2m in transformation-related expenses in the quarter as part of its ongoing 2025 Restructuring Plan.

Cumulative costs under the plan have reached $266m, with total programme costs now expected to be approximately $305m on completion by the end of 2026.

Outlook for FY27

For the full 2027 fiscal year, Under Armour now anticipates revenue to decline at a mid-single-digit percentage rate. This is a sharper drop than its previous outlook of a slight decline, which the company attributed to softer demand in North America and Asia-Pacific.

The outlook for North America moved from a low-single-digit decline to a mid-single-digit drop, and projections for Asia-Pacific and EMEA also shifted from low-single-digit growth to low-single-digit declines.

Despite these cuts, the company has kept its previous profit guidance unchanged.

Gross margin is expected to rise by 220 to 270 basis points, with around 150 basis points of the improvement coming from first-quarter IEEPA tariff refunds.

After adjusting for these, margin improvements are projected to stem from pricing actions, reduced discounting, and a more favourable sales channel mix.

Selling, general and administrative expenses are expected to decline at a high-single-digit rate, reflecting efforts to align spending with softer demand.

Operating income remains forecast at $96m to $116m, with cost discipline and operational changes set to offset revenue losses.

Its diluted loss per share for the year is now projected between $0.01 and $0.05, compared to breakeven to a loss of $0.04 previously.

"By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price," added Plank.

"Under Armour cuts FY27 sales outlook amid soft demand " was originally created and published by Just Style, a GlobalData owned brand.