The gross margin contracted 250 basis points (bps) to 47.3 per cent, pressured by higher tariffs and an unfavourable regional mix, partly offset by gains in pricing and foreign exchange. SG&A expenses rose 12 per cent to $582 million, with adjusted SG&A up 9 per cent to $577 million. Restructuring charges totalled $32 million.
Under Armour has reported revenues of $1.33 billion in Q2 FY26, down 5 per cent YoY, though ahead of guidance, with improving brand traction in North America.
Gross margin fell 250 bps to 47.3 per cent and SG&A rose 12 per cent to $582 million.
Operating income was $17 million.
For H1 FY26, revenue declined 4.5 per cent to $2.47 billion.
For FY26, expectations are set to decline by 4–5 per cent.
The operating income stood at $17 million, while adjusted operating income was $53 million. The company posted a net loss of $19 million, translating to a diluted loss per share of $0.04, with adjusted EPS at $0.04, Under Armour said in a press release.
The inventory of the company fell 6 per cent to $1 billion, and cash and equivalents stood at $396 million. Under Armour also repurchased $25 million worth of Class C stock, retiring 5.2 million shares.
Region-wise, North American revenue dropped 8 per cent to $792 million, while international sales rose 2 per cent to $551 million (down 1 per cent currency neutral). Regionally, Europe, Middle East, and Africa (EMEA) grew 12 per cent, Latin America rose 15 per cent, and Asia-Pacific fell 14 per cent.
By channel, wholesale revenue declined 6 per cent to $775 million, and direct-to-consumer (DTC) fell 2 per cent to $538 million, with e-commerce down 8 per cent, accounting for 28 per cent of total DTC sales.
By product category, apparel sales slipped 1 per cent to $936 million, footwear plunged 16 per cent to $264 million, and accessories eased 3 per cent to $113 million.
“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 Kevin Plank, President and CEO of Under Armour. “With our strategy, operating model, and go-to-market approach firmly in place, we’re staying disciplined and focused. The response from consumers and partners reflects this execution, driven by stronger product, sharper storytelling, and a renewed belief in the Under Armour brand.”
For the six months period or in the first half (H1) of FY26, Under Armour’s revenue reached $2.47 billion, down 4.5 per cent YoY. The decline reflects softness in North America and Asia-Pacific, partly offset by strong EMEA growth.
North America revenue decreased 7 per cent to $1.46 billion, Asia-Pacific dropped 12 per cent to $343 million, EMEA climbed 11 per cent to $566 million, and Latin America eased 2.7 per cent to $108 million.
Wholesale sales declined 5.5 per cent to $1.42 billion, while direct-to-consumer dipped 2.8 per cent to $1 billion.
Apparel generated $1.68 billion in H1, down 1.3 per cent year-over-year, footwear revenue slid 15 per cent to $529 million, while accessories edged up 2 per cent to $213 million. Licensing revenue increased 14.8 per cent to $53 million.
The gross profit totalled $1.18 billion, reflecting a 47.7 per cent margin. Operating income came to $20 million, versus a loss of $127 million in the prior-year period. Net loss stood at $21 million, or $0.05 per diluted share.
During the period, Under Armour incurred $45 million in restructuring charges and continued execution of its Fiscal 2025 Restructuring Plan, having recorded $147 million in total related charges to date.
For FY26, Under Armour expects revenue to decline 4 to 5 per cent YoY, driven by softness in North America and Asia-Pacific. Gross margin is projected to contract by 190–210 basis points, while adjusted operating income is expected between $90 million and $105 million. Adjusted diluted EPS is forecast between $0.03 and $0.05.
Fibre2Fashion News Desk (SG)
