Under Armour Inc C
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did UA Beat Earnings? Q2 2026 Results
Under Armour posted a modest but meaningful beat in Q2 fiscal 2026, delivering adjusted diluted EPS of $0.04 against a consensus estimate of breakeven, while revenue of $1.33 billion edged past the $1.31 billion consensus by 2.11%, even as total sales fell 4.7% year over year. The headline narrative was one of disciplined execution amid persistent headwinds: gross margin contracted 250 basis points to 47.3%, pressured by tariff-driven supply chain costs and unfavorable channel mix, while footwear emerged as the sharpest drag, sliding 16% to $263.63 million. CEO Kevin Plank pointed to early brand momentum in North America as a meaningful turnaround signal, though the region's revenue still declined 8% to $791.50 million; EMEA provided a brighter offset, rising 12% to $317.68 million. Shares slipped nearly 5% in premarket trading as investors weighed a cautious fiscal 2026 outlook calling for revenue to decline 4-5% and gross margin to compress an additional 190-210 basis points, largely tied to ongoing U.S. tariff exposure, with adjusted diluted EPS guided to just $0.03 to $0.05 for the full year.
- Signs of brand momentum in North America indicating turnaround progress
- EMEA revenue grew 12% driven by strong international demand
- Latin America revenue grew 15% year-over-year
- Gross margin pressured by 250 basis points from tariff-driven supply chain headwinds and unfavorable channel/regional mix
- Footwear revenue declined 16% as weakest product category
- Absence of $27 million insurance recovery benefit from prior year inflated SG&A growth
- Higher marketing expenses due to timing shifts from second half to Q2
“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. 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.”
Under Armour CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026 (year ending March 31, 2026), Under Armour expects revenue to decrease 4-5%, including high-single-digit declines in North America and Asia-Pacific and a high-single-digit increase in EMEA. Gross margin is expected to decline 190-210 basis points mainly due to higher U.S. tariffs, partially offset by favorable FX, product mix, and pricing. Adjusted SG&A is projected to decline at a mid-single-digit rate. GAAP operating income is expected to range from $19 million to $34 million; adjusted operating income is forecasted between $90 million and $105 million. GAAP diluted loss per share is expected to be $0.15 to $0.17, while adjusted diluted EPS is expected to be $0.03 to $0.05.
UA YoY Financials
UA Revenue by Segment
UA Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.