Under Armour Inc C
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.48%.
Did UA Beat Earnings? Q4 2026 Results
Under Armour closed out fiscal 2026 on unsteady footing, reporting Q4 revenue of $1.17 billion, a 0.8% decline year-over-year that nonetheless edged fractionally ahead of the $1.17 billion consensus estimate, while adjusted diluted loss per share of $0.03 extended the company's streak of beating EPS consensus estimates to four consecutive quarters. The most pressing story of the quarter was severe gross margin compression, with GAAP gross margin falling 470 basis points to 42.0% as higher tariffs, elevated product costs, and unfavorable regional mix weighed heavily on profitability, pushing the company to a GAAP operating loss of $33.70 million. North America remained a drag, sliding 7%, though international markets grew 10% on a reported basis to provide a partial buffer. Looking ahead, Under Armour guided fiscal 2027 adjusted EPS to $0.08 to $0.12, with adjusted operating income of $140 million to $160 million, an outlook that bakes in roughly $70 million in assumed IEEPA tariff refunds and CEO Kevin Plank's stated pivot toward brand-building investment as the company's next phase of recovery.
- International revenue growth of 10% offsetting North America decline of 7%
- Direct-to-consumer revenue growth of 5% driven by 8% owned-and-operated store growth
- SG&A expenses decreased 15% through lower marketing spend timing, lower incentive compensation, and overall expense management
- Gross margin declined 470 basis points primarily due to higher tariffs, higher product costs, pricing headwinds, and unfavorable regional mix
- Inventory decreased 3% year-over-year to $915 million
“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. Over the past two years, we've addressed structural and macro challenges head-on while elevating our product strategy. We're streamlining our operating model and increasing accountability in execution, driving a more controlled and predictable business.”
Under Armour CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027, Under Armour expects revenue to decline slightly year-over-year, with a low single-digit decrease in North America partially offset by low single-digit growth in EMEA and Asia-Pacific. Gross margin is expected to increase 220 to 270 basis points, with approximately 150 basis points driven by an assumed reversal of IEEPA tariff costs. GAAP operating income is expected to be $96 million to $116 million, while adjusted operating income is anticipated at $140 million to $160 million. Adjusted diluted EPS is expected to range from $0.08 to $0.12. The adjusted outlook includes approximately $70 million in assumed IEEPA tariff refunds, approximately $35 million in Middle East conflict headwinds, and approximately $30 million in incremental marketing investments. The Fiscal 2025 Restructuring Plan is being extended with total costs now expected to reach approximately $305 million, with substantial completion by December 31, 2026.
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Figures from SEC filings and company reports. Not investment advice.