Under Armour (UA) Earnings Date & Reports

Key Takeaways

• Under Armour reported second quarter fiscal 2027 revenue of $1.24 billion, down about 7% year over year from $1.33 billion.
• Adjusted earnings per share came in at breakeven ($0.00), modestly ahead of the roughly $0.01-per-share loss analysts had expected.
• Gross margin fell to 47.0%, down 30 basis points, pressured by currency, channel and regional mix, and pricing.
• The company raised its full-year operating income outlook but lowered its gross margin improvement forecast.
• Shares slid roughly 10% to 12% in premarket trading following the announcement.
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Earnings Context and Why It Matters

Under Armour's second quarter fiscal 2027 results land in the middle of a multi-year restructuring effort aimed at sharpening the brand, tightening inventory, and restoring sustainable profitability. With revenue declining across most regions and channels, investors are watching closely to see whether the company's cost discipline and product reset can offset persistent demand softness in North America and Asia-Pacific. The quarter matters because management simultaneously trimmed its gross margin expectations for the year while raising its operating income range, signaling that transformation savings are flowing through even as external costs — including freight, fuel, and foreign exchange — climb. The market's sharp reaction shows how sensitive sentiment remains to any shift in margin trajectory.

Reported Results

For the second quarter of fiscal 2027, which ended September 30, 2026, Under Armour reported net revenue of $1.24 billion, a decline of about 7% from $1.33 billion in the prior-year period. The company posted a net loss of $425,000, compared with a net loss of $18.8 million a year earlier, while adjusted results came in at breakeven per share — slightly better than the consensus estimate of a roughly $0.01 loss.

North America revenue fell 7% to $737 million, while international revenue declined 7% to $509 million, or 9% at constant currency (which removes the effect of exchange-rate fluctuations). EMEA (Europe, the Middle East, and Africa) and Asia-Pacific each fell 9%, while Latin America rose 3%. By channel, wholesale revenue decreased 6% to $725 million and direct-to-consumer revenue declined 8% to $494 million, with e-commerce down 12%. Apparel revenue fell 6% to $880 million, footwear dropped 11% to $234 million, and accessories declined 7% to $105 million.

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Market Reaction and Investor Sentiment

Investors responded negatively to the mixed report, with Under Armour shares falling roughly 10% to 12% in premarket trading. The decline came despite revenue and adjusted earnings per share landing roughly in line with, or slightly ahead of, consensus. The primary driver of the negative reaction was the lowered gross margin outlook, compounded by a larger-than-previously-expected headwind from the Middle East conflict, now estimated at about $45 million versus a prior view of $35 million. Sentiment reflects investor concern that external cost pressures — particularly elevated fuel and freight costs tied to rising oil prices — are eroding the benefit of the company's restructuring savings even as management raises its operating income forecast.

Forward Outlook and Key Factors to Monitor

Under Armour maintained its expectation for a mid-single-digit revenue decline for fiscal 2027 but adjusted its margin targets. The company now expects gross margin to improve by 170 to 220 basis points, down from a prior forecast of 220 to 270 basis points, citing higher fuel and freight costs, inventory management actions, and foreign exchange headwinds.

At the same time, management raised its operating income range to $99 million to $119 million, up from $96 million to $116 million, while keeping adjusted operating income guidance at $140 million to $160 million. Earnings per share are now expected to range between a loss of $0.02 and a profit of $0.02.

Looking ahead, investors should monitor whether transportation and energy costs stabilize, since these factors directly influence the company's margin trajectory. Progress on inventory — which rose 4% to $1.1 billion — and the completion of the restructuring program, expected to be substantially finished by December 31, 2026, will also be important signals. Demand trends in North America and Asia-Pacific, e-commerce performance, and any recovery in footwear remain key watch items for future quarters.

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