Under Armour Reports Net Income In Q1; Updates FY27 Outlook
Under Armour reported Q1 net income of $1 million versus a $2.6 million loss a year earlier. Non-GAAP net income rose to $20.99 million from $8.57 million. Revenue fell 3% to $1.1 billion. The company recorded $6 million in restructuring and transformation charges and expects its plan to be largely complete by Dec. 31, 2026. It cut FY27 revenue outlook to a mid-single-digit decline and widened diluted EPS loss to -$0.01 to -$0.05.
How this was made
The 30-second read
Why it matters
The key tradable update is the FY27 outlook revision, driven by softer demand in North America and Asia-Pacific, with a wider diluted loss per share range while adjusted EPS ex-charges stays unchanged.
Market read
Investors are likely to reprice FY27 earnings risk based on the guidance cut and demand commentary, even as adjusted EPS ex-charges remains steady.
What to watch
The plan is expected to be substantially complete by Dec 31, 2026, so investors may be underpricing the potential for later margin normalization beyond FY27.
Background
Under Armour posted Q1 results with improved GAAP profitability but declining revenue, alongside restructuring and transformation-related costs.
Ticker impact
Under Armour reported Q1 net income improvement but cut FY27 revenue outlook to a mid-single-digit decline and widened DPS loss range.
Likely continued pressure on the stock until investors see demand stabilization or clearer margin offset from restructuring.
The article’s newest decision is the FY27 outlook update, including softer demand in North America and Asia-Pacific and a wider diluted loss per share range, which typically drives estimate revisions.
Market effects
Signals ongoing apparel/athletic demand softness and restructuring-driven margin support may not fully offset top-line weakness.
Highlights weakness specifically in North America and Asia-Pacific, which can influence regional consumer discretionary sentiment.
Moderate read-through for global sportswear demand expectations and restructuring effectiveness among peers.
Counterpoint
Non-GAAP adjusted EPS guidance remains $0.08 to $0.12, suggesting restructuring and cost actions could cushion earnings despite revenue softness.
Key entities
- companyUnder Armour
Reported Q1 results and updated FY27 outlook, including weaker revenue expectations and revised diluted loss per share range.
