BALTIMORE – November 06, 2026 -- Under Armour reported a 7 percent decline in second-quarter fiscal 2027 revenue to $1.2 billion, yet posted operating income of $15 million and raised its full-year operating income outlook to $99 million-$119 million from $96 million-$116 million.
Revenue declines in every major region except Latin America
North America revenue fell 7 percent to $737 million. International revenue fell 7 percent to $509 million, down 9 percent in constant currency. EMEA declined 9 percent (down 8 percent in constant currency) and Asia-Pacific fell 9 percent (down 12 percent in constant currency). Latin America rose 3 percent but fell 4 percent in constant currency.
Wholesale revenue dropped 6 percent to $725 million, while direct-to-consumer revenue fell 8 percent to $494 million. Owned-and-operated stores declined 7 percent. eCommerce fell 12 percent and made up 27 percent of DTC revenue.
Footwear sales slide 11 percent to $234 million
Apparel revenue decreased 6 percent to $880 million, and accessories fell 7 percent to $105 million. Gross margin slipped 30 basis points to 47.0 percent, with unfavorable currency, channel and regional mix, and pricing partly offset by supply chain benefits and favorable product mix.
SG&A expenses fell 4 percent to $557 million on lower marketing spend and cost discipline. Adjusted SG&A declined 3 percent to $559 million. Restructuring charges totaled $11 million. Adjusted operating income was $25 million. Net loss was $0.4 million, and adjusted net loss was $2 million. Diluted and adjusted diluted loss per share were both $0.00.
CEO Kevin Plank said the company is driving greater efficiency, sharpening its product offering and amplifying global marketing.
Inventory rises 4 percent to $1.1 billion as borrowings reach $190 million
Cash and equivalents stood at $285 million at quarter-end. Borrowings of $190 million were outstanding under the company's $1.1 billion revolving credit facility.
Restructuring plan costs reach $280 million of an expected $305 million
Under the Fiscal 2025 Restructuring Plan, Under Armour booked $13 million in the quarter: $11 million in restructuring charges and $2 million in transformation-related SG&A. Cumulative costs total $280 million, comprising $121 million in cash and $159 million in non-cash charges. The company expects total program costs of about $305 million and substantial completion by December 31, 2026.
Middle East conflict headwind grows to $45 million in the fiscal 2027 outlook
Under Armour still expects fiscal 2027 revenue to decline at a mid-single-digit rate. It trimmed its gross margin outlook to an increase of 170-220 basis points, from 220-270 basis points, citing higher fuel and freight costs, planned inventory actions and currency headwinds. About 150 basis points of the improvement stems from recovery of IEEPA-related tariff costs expensed in fiscal 2026.
Adjusted operating income is still expected at $140 million-$160 million. That range includes a roughly $70 million benefit from refunds of prior-year IEEPA tariff expenses, offset by Middle East conflict headwinds of about $45 million, up from $35 million previously.
SG&A is still expected to fall at a high-single-digit rate, or a low-single-digit rate on an adjusted basis. Diluted earnings per share are now expected between a loss of $0.02 and earnings of $0.02, versus a prior range of a loss of $0.01 to $0.05. Adjusted diluted EPS is still expected at $0.08-$0.12.