Under Armour Q1 Revenue Falls 4 Percent to 1.1 Billion

Under Armour has reported its unaudited financial results for the first quarter of fiscal 2026, which ended on June 30, 2025. Results were prepared following U.S. GAAP, while also providing “currency-neutral” and “adjusted” figures as additional insights into performance.

Despite a softer top line, leadership emphasized progress in the company’s long-term transformation strategy.

“We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation , sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline,” said Kevin Plank, President and CEO of Under Armour. “Despite ongoing uncertainty, our brand is gaining strength and we’re executing our strategic plan with clarity and confidence.”

Plank added:

“Moving ahead, we’re focused on strengthening our brand positioning with premium products and increasing our average selling prices through innovative offerings, optimizing our top-volume programs, and creating a more compelling full, price-to-value proposition. Regardless of the backdrop, this is about building a fearless, thoughtful, and stronger Under Armour.”

First Quarter Fiscal 2026 Review

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  Revenue: Declined 4% to $1.1 billion (down 4% currency-neutral).

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  Regional performance:

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    North America: down 5% to $670 million

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    International: down 1% to $467 million (down 2% currency-neutral)

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    Within international: EMEA grew 10% (up 6% CN), Asia-Pacific declined 10%, and Latin America declined 15%

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  Channel performance:

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    Wholesale: down 5% to $649 million

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    Direct-to-consumer: down 3% to $463 million

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    Owned/operated stores: up 1%

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    eCommerce: down 12%, accounting for 31% of DTC revenue

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  Category performance:

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    Apparel: down 1% to $747 million

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    Footwear: down 14% to $266 million

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    Accessories: up 8% to $100 million

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  Gross margin: Rose 70 basis points to 48.2%, driven by FX, pricing, and product mix, partially offset by higher supply chain costs and channel mix.

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  SG&A: Declined 37% to $530 million, largely due to the absence of last year’s legal reserve expense.

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    Adjusted SG&A: Declined 6% to $522 million, excluding ~$8 million in transformation costs.

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  Restructuring charges: $13 million.

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  Operating income: $3 million; adjusted operating income at $24 million.

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  Net loss: $3 million; adjusted net income at $9 million.

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  Diluted loss per share: $0.01; adjusted EPS at $0.02.

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  Inventory: Rose 2% to $1.1 billion.

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  Cash & cash equivalents: $911 million, bolstered by $400 million in senior notes raised during the quarter. Proceeds will be used, along with revolver borrowing and cash on hand, to retire the company’s $600 million senior notes due June 2026.

Fiscal 2025 Restructuring Plan

Under Armour continues its previously announced Fiscal 2025 Restructuring Plan, aimed at improving financial and operational efficiency.

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  Estimated total cost: $140M – $160M

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  Cash-related: up to $90M

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  Non-cash: up to $70M

By the end of Q1 FY26:

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  The company had recorded $71M in restructuring & impairment charges and $39M in transformational expenses, totaling $110M.

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  Of that, $65M is cash-related and $45M is non-cash.

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  Remaining charges under the plan will be recognized by fiscal year-end 2026.

Second Quarter Fiscal 2026 Outlook

Looking ahead, Under Armour offered guidance underlining continued transformation amid macroeconomic uncertainty, with trade policy and tariffs posing headwinds.

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  Revenue: Expected to decline 6–7%, including:

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    Low-double-digit decline in North America

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    High single-digit growth in EMEA

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    Low-teens decline in Asia-Pacific

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  Gross margin: Expected to decline 340–360 bps, mainly due to supply chain and tariff-related pressures. FX and pricing are expected to provide a partial offset.

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  SG&A: Forecasted to grow low double digits. Adjusted SG&A (ex-transformation) is expected to rise high single digits, driven by increased marketing investments.

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  Operating income: Projected at a loss of $10M to breakeven. Adjusted operating income: between $30M–$40M.

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  Diluted loss per share: $0.07–$0.08.

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  Adjusted EPS: $0.01–$0.02.

Investor Information

Under Armour will hold its Q1 FY26 earnings call today at 8:30 a.m. ET. The company also provided detailed reconciliations between GAAP and non-GAAP measures in the supplemental financial information accompanying the release.