Under Armour Inc C
Q1 2027 Earnings
Adjusted EPS excludes $4 million in restructuring charges, $2 million in transformation-related SG&A expenses, and a $14.8 million tax provision adjustment (valuation allowance against U.S. federal deferred tax assets). GAAP diluted EPS was $0.00.
Market Reaction
Did UA Beat Earnings? Q1 2027 Results
Under Armour posted a mixed first quarter for fiscal 2027, delivering adjusted diluted EPS of $0.05, up from $0.02 a year ago, even as revenue slipped 3.2% to $1.10 billion, just short of the $1.11 billion consensus estimate. The headline story was a dramatic 590-basis-point expansion in gross margin to 54.1%, fueled largely by refunds received on IEEPA tariff costs originally expensed in fiscal 2026, a one-time recovery benefit the company now expects to total roughly $70 million for the full year. That profitability tailwind helped lift adjusted net income to $20.99 million from $8.57 million a year ago, even as North America revenue fell 9% to $609.78 million and eCommerce slid 12%. EMEA provided a partial offset, growing 12% to $278.68 million. Looking ahead, management trimmed its full-year revenue outlook to a mid-single-digit percentage decline while holding its adjusted EPS guidance of $0.08 to $0.12, banking on disciplined cost controls, including a high-single-digit reduction in GAAP SG&A, to protect margins through continued demand softness.
- Gross margin expanded 590 basis points to 54.1%, driven primarily by IEEPA tariff cost refunds
- EMEA revenue grew 12% (10% constant currency), the strongest regional performance
- North America revenue declined 9%, the weakest regional performance
- eCommerce revenue decreased 12%, representing 29% of total DTC revenue
- Footwear was the weakest product category, declining 8%
- Wholesale outperformed DTC, declining only 2% versus 6% for DTC
- Adjusted operating income more than doubled to $52.4 million from $24.4 million year-over-year
“As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook. By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price.”
Under Armour CEO, on the earnings call
Forward Guidance & Outlook
Under Armour updated its fiscal 2027 outlook, now expecting revenue to decline at a mid-single-digit percentage rate (previously a slight decline), driven by softer demand in North America and Asia-Pacific. North America is now expected to decline mid-single-digit (previously low-single-digit), while both Asia-Pacific and EMEA are now expected to decline low-single-digit (previously low-single-digit increases). Gross margin is still expected to increase 220 to 270 basis points, with approximately 150 bps from IEEPA tariff refunds. GAAP operating income outlook maintained at $96 million to $116 million; adjusted operating income maintained at $140 million to $160 million. GAAP diluted loss per share now expected at $0.01 to $0.05 (previously breakeven to $0.04 loss). Adjusted diluted EPS maintained at $0.08 to $0.12. SG&A (including transformation) now expected to decrease at a high-single-digit rate. The outlook includes approximately $70 million in IEEPA tariff refund benefits and approximately $35 million in Middle East conflict-related supply chain headwinds.
UA YoY Financials
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UA Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.