Under Armour Earnings Cut Revenue Outlook
Under Armour earnings had an adjusted EPS beat even as Q1 revenue fell and management trimmed full-year revenue outlook, a move likely to pressure shares.
KEY TAKEAWAYS
- Adjusted EPS beat a cited consensus at $0.05 versus $0.02.
- Revenue fell 3.0% to $1.1 billion and management cut full-year revenue outlook.
- Company kept operating income and adjusted EPS guidance, signaling margin resilience despite weaker demand.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Under Armour (NYSE: UA, UAA) reported adjusted earnings per share (EPS) for the quarter ended June 30, 2026, that beat a cited consensus despite a revenue decline. The company trimmed its full-year revenue outlook, citing softer demand in key markets.
Mixed Quarterly Results and Revised Guidance
In a press release on August 7, 2026, Under Armour reported adjusted diluted EPS of $0.05, above a cited consensus of $0.02. GAAP diluted EPS was $0.00. Revenue fell 3.0% to $1.1 billion, or 4.0% on a constant-currency basis. The company posted a small profit compared with a loss a year earlier.
Management lowered its full-year revenue forecast to a mid-single-digit decline from a prior expectation of a slight decline. The revision reflected weaker demand, particularly in North America and Asia-Pacific. Despite the revenue cut, Under Armour maintained its operating income guidance of $96 million to $116 million, adjusted operating income range of $140 million to $160 million, and adjusted EPS target of $0.08 to $0.12 for fiscal 2027. The company said, "Revenue is now expected to decline at a mid-single-digit percentage rate compared with the prior outlook of a slight decline."
Regional Performance and Margin Expansion
North American revenue fell 9.0% to $610 million, while international sales rose 5.0% to $490 million. Within international markets, EMEA revenue increased 12.0%, Latin America grew 8.0%, and Asia-Pacific declined 7.0%.
Gross margin expanded 590 basis points to 54.1%, partly due to tariff refunds. This margin improvement helped Under Armour sustain its profitability targets despite softer sales.
The combination of an adjusted EPS beat, lowered revenue outlook, and steady profit guidance highlights near-term margin resilience amid demand weakness. The company’s performance in North America and Asia-Pacific will be critical as fiscal 2027 progresses.
