Meanwhile, for fiscal 2027 (FY27), the company is now expecting revenue to decline slightly year-on-year (YoY), with a low single-digit decrease in North America partly offset by low single-digit growth in Europe, the Middle East and Africa (EMEA) and Asia-Pacific. Gross margin is expected to improve by 220 to 270 basis points.
For FY27, Under Armour expects slight revenue decline and margin improvement.
The company’s FY26 revenue fell 4 per cent to $5 billion, led by weaker North America sales, lower wholesale revenue, and a sharp footwear decline.
Gross margin narrowed due to tariffs and cost pressures.
In Q4, revenue slipped 1 per cent as North America weakened, though international and DTC sales grew.
“As our topline stabilises in fiscal 2027, we are applying the same rigour that is strengthening our product engine to our storytelling capabilities,” said Kevin Plank, president and CEO of Under Armour.
The company expects operating income of $96 million to $116 million. Adjusted operating income is projected at $140 million to $160 million, including an estimated $70 million benefit from assumed refunds related to prior-year International Emergency Economic Powers Act (IEEPA) tariff expenses, around $35 million in headwinds from the Middle East conflict, and about $30 million in incremental marketing investment, Under Armour said in a press release.
Diluted loss per share is expected to range from breakeven to $0.04, while adjusted diluted earnings per share (EPS) are forecast between $0.08 and $0.12.
Revenue declines as North America weighs on FY26
In FY26 ended March 31, the company has reported a 4 per cent decline in revenue to $5 billion.
“Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand,” added Plank.
He said as the company’s topline stabilises in FY27, Under Armour is applying the same rigour that is strengthening its product engine to its storytelling capabilities.
“Building world-class, modern marketing excellence is now our highest priority that we believe will accelerate consumer demand and help reshape Under Armour’s profit profile,” he said.
Regionally, North America revenue decreased 8 per cent to $2.9 billion, while international revenue grew 4 per cent to $2.1 billion. Within the international business, EMEA revenue increased 9 per cent, Asia-Pacific revenue declined 5 per cent, and Latin America revenue rose 9 per cent.
Wholesale revenue fell 5 per cent to $2.8 billion, while direct-to-consumer (DTC) revenue declined 2 per cent to $2.1 billion. Revenue from owned-and-operated stores increased 1 per cent, while e-commerce revenue decreased 7 per cent and accounted for 33 per cent of total DTC revenue for the year.
By category, apparel revenue decreased 2 per cent to $3.4 billion, footwear revenue declined 11 per cent to $1.1 billion, and accessories revenue increased 1 per cent to $414 million.
Gross margin decreased 240 basis points to 45.5 per cent, primarily due to higher tariffs, along with pricing pressure, higher product costs, and unfavourable channel and regional mix. These headwinds were partly offset by positive foreign currency impacts and favourable product mix. Adjusted gross margin declined 220 basis points to 45.7 per cent.
Q4 revenue slips as North America weakens
In the fourth quarter (Q4), Under Armour’s revenue decreased 1 per cent to $1.2 billion, or 4 per cent on a constant currency basis. North America revenue declined 7 per cent to $641 million, while international revenue increased 10 per cent to $539 million. Within international markets, Europe, Middle East and Asia’s (EMEA) revenue rose 7 per cent, Asia-Pacific grew 13 per cent, and Latin America increased 22 per cent.
Wholesale revenue fell 3 per cent to $748 million, while DTC revenue rose 5 per cent to $406 million. Owned-and-operated store revenue increased 8 per cent, while e-commerce revenue remained flat and represented 35 per cent of total DTC revenue during the quarter.
Under its FY25 restructuring plan, the company recorded $36 million in restructuring and transformation-related costs during the fourth quarter. To date, it has incurred $261 million in total restructuring and transformation costs. Under Armour is extending the plan, bringing total expected programme costs to around $305 million, with substantial completion expected by December 31, 2026, added the release.
Fibre2Fashion News Desk (SG)
