UNDER ARMOUR REPORTS SECOND QUARTER FISCAL 2027 RESULTS
Under Armour, Inc. (UA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 UNDER ARMOUR REPORTS SECOND QUARTER FISCAL 2027 RESULTS BALTIMORE, Nov. 6, 2026 – Under Armour, Inc. (NYSE: UAA, UA) today announced unaudited financial results for the second quarter of fiscal 2027, which ended September 30, 2026. Results are reported in accordance
How this was made
The 30-second read
Why it matters
The earnings miss and updated revenue guidance are likely to trigger a sell‑off, while the improved margin outlook offers a modest upside cushion.
Market read
The release provides fresh, material data that can move UAA and influences the broader consumer discretionary sector.
What to watch
The gross‑margin outlook has been revised upward, which may offset some revenue weakness.
Under Armour reports second-quarter fiscal 2027 revenue down 7 percent to $1.2 billion and operating income of $15 million; updates fiscal 2027 operating-income outlook to $99 million to $119 million.
Revenue declined 6.9 percent, with declines in North America, EMEA and Asia-Pacific, while gross margin fell to 47.0 percent and the company reported a $0.4 million net loss. Operating income of $15 million exceeded the stated outlook, and fiscal 2027 GAAP operating-income guidance was raised to $99 million to $119 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 fiscal 2027 net revenues (in thousands)GAAP | $1.24B | – | (6.9) % |
| Q2 fiscal 2027 net revenue growth (decline) constant currencynon-GAAP | (7.3) % | – | (7.3) % |
| Q2 fiscal 2027 cost of goods sold (in thousands)GAAP | 658.1M | – | – |
| Q2 fiscal 2027 gross profit (in thousands)GAAP | 583.6M | – | – |
| Q2 fiscal 2027 gross marginGAAP | 47.0 % | – | decreased 30 basis points |
| Q2 fiscal 2027 selling, general and administrative expenses (in thousands)GAAP | $557.4M | – | decreased 4 percent |
| Q2 fiscal 2027 adjusted selling, general and administrative expenses (in thousands)non-GAAP | $558.7M | – | decreased 3 percent |
| Q2 fiscal 2027 restructuring charges (in thousands)GAAP | 11.36M | – | – |
| Q2 fiscal 2027 income from operations (in thousands)GAAP | $14.79M | – | – |
| Q2 fiscal 2027 adjusted income from operations (in thousands)non-GAAP | $24.94M | – | – |
| Q2 fiscal 2027 interest expense, net (in thousands)GAAP | −$8.28M | – | – |
| Q2 fiscal 2027 other expense, net (in thousands)GAAP | −$8.91M | – | – |
| Q2 fiscal 2027 income (loss) before income taxes (in thousands)GAAP | −$2.41M | – | – |
| Q2 fiscal 2027 income tax benefit (in thousands)GAAP | −$2.37M | – | – |
| Q2 fiscal 2027 income (loss) from equity method investments (in thousands)GAAP | −$391K | – | – |
| Q2 fiscal 2027 net loss (in thousands)GAAP | −$425K | – | – |
| Q2 fiscal 2027 adjusted net loss (in thousands)non-GAAP | −$2.05M | – | – |
| Q2 fiscal 2027 diluted net income (loss) per shareGAAP | $ 0.00 | – | – |
| Q2 fiscal 2027 adjusted diluted net income (loss) per sharenon-GAAP | $ 0.00 | – | – |
| Six months fiscal 2027 net revenues (in thousands)GAAP | $2.34B | – | (5.2) % |
| Six months fiscal 2027 gross profit (in thousands)GAAP | 1.18B | – | – |
| Six months fiscal 2027 gross marginGAAP | 50.3 % | – | – |
| Six months fiscal 2027 income from operations (in thousands)GAAP | $61.53M | – | – |
| Six months fiscal 2027 adjusted income from operations (in thousands)non-GAAP | $77.33M | – | – |
| Six months fiscal 2027 net income (in thousands)GAAP | $120K | – | – |
| Six months fiscal 2027 adjusted net income (in thousands)non-GAAP | $18.94M | – | – |
| Six months fiscal 2027 diluted net income (loss) per shareGAAP | $ 0.00 | – | – |
| Six months fiscal 2027 adjusted diluted net income (loss) per sharenon-GAAP | $ 0.04 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q2 fiscal 2027 North America revenue (in thousands)Not provided. | $737.2M | – | (6.9) % |
| Q2 fiscal 2027 EMEA revenue (in thousands)Constant currency net revenue growth (decline) was (8.0) %. | 290.6M | – | (8.5) % |
| Q2 fiscal 2027 Asia-Pacific revenue (in thousands)Constant currency net revenue growth (decline) was (11.6) %. | 163.5M | – | (8.8) % |
| Q2 fiscal 2027 Latin America revenue (in thousands)Constant currency net revenue growth (decline) was (3.5) %. | 55.42M | – | 3.0 % |
| Q2 fiscal 2027 Corporate Other revenue (in thousands)Primarily includes net revenues from foreign currency hedge gains and losses generated by entities within operating segments but managed through the central foreign exchange risk management program. | −$4.97M | – | – |
| Q2 fiscal 2027 wholesale revenue (in thousands)Not provided. | $725.0M | – | (6.5) % |
| Q2 fiscal 2027 direct-to-consumer revenue (in thousands)Owned-and-operated store revenue declined 7 percent and eCommerce revenue decreased 12 percent. | 493.9M | – | (8.2) % |
| Q2 fiscal 2027 apparel revenue (in thousands)Not provided. | $880.0M | – | (6.0) % |
| Q2 fiscal 2027 footwear revenue (in thousands)Not provided. | 234.0M | – | (11.2) % |
| Q2 fiscal 2027 accessories revenue (in thousands)Not provided. | 104.9M | – | (7.2) % |
| Q2 fiscal 2027 licensing revenues (in thousands)Not provided. | 27.79M | – | (4.1) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027, year ending March 31, 2027; and third quarter ending December 31, 2026 outlook
- RevenueRevenue is still expected to decline at a mid-single-digit percentage rate.
- Gross marginincrease 170 to 220 basis points
- Operating expensesSG&A expense, including transformation expenses related to the Fiscal 2025 Restructuring Plan and the benefit from the reversal of certain previously accrued litigation reserve expense, is still expected to decrease at a high-single-digit rate. Excluding transformation expenses and the reversal of the litigation reserve accrual, adjusted SG&A is still expected to decrease at a low-single-digit rate.
- NoteFiscal 2027 GAAP income from operations: $ 99 million to $ 119 million.
- NoteFiscal 2027 adjusted income from operations: $ 140 million to $ 160 million.
- NoteFiscal 2027 GAAP diluted net income (loss) per share: $ (0.02) to $ 0.02.
- NoteFiscal 2027 adjusted diluted net income (loss) per share: $ 0.08 to $ 0.12.
- NoteThird quarter ending December 31, 2026 GAAP income (loss) from operations: $ (30) million to $ (20) million.
- NoteThird quarter ending December 31, 2026 adjusted income (loss) from operations: $ (5) million to $ 5 million.
- NoteThird quarter ending December 31, 2026 GAAP diluted net income (loss) per share: $ (0.03) to $ (0.01).
- NoteThird quarter ending December 31, 2026 adjusted diluted net income (loss) per share: $ (0.03) to $ (0.01).
- NoteThis outlook includes an approximate $70 million benefit from the realization of refunds from prior-year IEEPA tariff expenses, partially offset by larger than anticipated headwinds related to the ongoing conflict in the Middle East of approximately $45 million.
Capital returns
- Common stock repurchased: — for the six months ended September 30, 2026.
- Common stock repurchased: $ (25,000) for the six months ended September 30, 2025.
What drove it
- Gross margin decreased 30 basis points primarily due to unfavorable foreign currency, channel and regional mix, and pricing, partially offset by supply chain benefits and favorable product mix.
- SG&A expenses decreased primarily due to lower marketing expenses and disciplined cost management across other areas of the business.
- Fiscal 2027 gross-margin guidance was reduced due largely to higher fuel and freight costs, impacts of planned inventory management actions, and foreign exchange headwinds.
- The company expects pricing actions, lower discounting, and a more favorable channel and product mix to drive gross-margin expansion excluding the recovery of IEEPA-related tariff costs expensed in fiscal 2026.
- The company expects actions to align operating expenses with the current demand environment while continuing to prioritize its highest-return strategic investments.
Concerns
- Q2 fiscal 2027 total net revenues declined 6.9 percent, with North America down 6.9 percent, EMEA down 8.5 percent, and Asia-Pacific down 8.8 percent.
- Footwear revenue declined 11.2 percent and direct-to-consumer revenue declined 8.2 percent.
- Q2 fiscal 2027 gross margin decreased to 47.0 percent from 47.3 percent.
- Inventory increased 4 percent to $1.1 billion.
- The fiscal 2027 outlook includes approximately $45 million of headwinds related to the ongoing conflict in the Middle East, versus prior $35 million.
- Fiscal 2027 GAAP diluted loss/earnings per share outlook was updated to a loss of $0.02 to earnings of $0.02, versus the prior expectation of a loss of $0.01 to $0.05 per share.
What to watch
- Execution of planned inventory management actions and the inventory balance of $1.1 billion.
- Whether pricing actions, lower discounting, and channel and product mix deliver the expected fiscal 2027 gross-margin expansion.
- The effect of higher fuel and freight costs, foreign exchange headwinds, and the ongoing conflict in the Middle East.
- Progress toward substantial completion of the Fiscal 2025 Restructuring Plan by December 31, 2026.
- Third-quarter GAAP income (loss) from operations outlook of $ (30) million to $ (20) million and adjusted income (loss) from operations outlook of $ (5) million to $ 5 million.
Balance sheet and cash flow
- Cash and cash equivalents were $ 284,550 (in thousands) at September 30, 2026, compared with $ 309,168 (in thousands) at March 31, 2026.
- Inventories were $ 1,075,939 (in thousands) at September 30, 2026, compared with $ 914,751 (in thousands) at March 31, 2026.
- Long-term debt, net of current maturities, was $ 580,409 (in thousands) at September 30, 2026, compared with $ 590,609 (in thousands) at March 31, 2026.
- $190 million of borrowings were outstanding under the company's $1.1 billion revolving credit facility.
- Net cash provided by operating activities was $ 20,065 (in thousands) for the six months ended September 30, 2026, compared with $ (20,978) (in thousands) in the prior-year period.
- Purchases of property and equipment were $ (27,233) (in thousands) for the six months ended September 30, 2026, compared with $ (55,851) (in thousands) in the prior-year period.
- Net cash used in financing activities was $ (618,564) (in thousands) for the six months ended September 30, 2026, compared with net cash provided by financing activities of $ 560,462 (in thousands) in the prior-year period.
- Cash, cash equivalents and restricted cash at the end of the period were $ 286,918 (in thousands), compared with $ 399,771 (in thousands) in the prior-year period.
Analysis
Under Armour reported a weaker top line in the second quarter of fiscal 2027. Net revenues were $ 1,241,743 (in thousands), down 6.9 percent from $ 1,333,380 (in thousands), while constant currency net revenue growth (decline) was (7.3) %. North America revenue declined 6.9 percent, EMEA declined 8.5 percent, and Asia-Pacific declined 8.8 percent. Latin America was the only reported geographic market with growth, up 3.0 percent. By channel, wholesale declined 6.5 percent and direct-to-consumer declined 8.2 percent. Footwear was the weakest major product category, declining 11.2 percent.
Profitability remained pressured in the quarter. Gross margin decreased 30 basis points to 47.0 percent, with unfavorable foreign currency, channel and regional mix, and pricing identified as the primary offsets to supply-chain benefits and favorable product mix. GAAP income from operations was $ 14,791 (in thousands), compared with $ 17,046 (in thousands) a year earlier, while adjusted income from operations was $ 24,941 (in thousands), down from $ 53,397 (in thousands). The company recorded a GAAP net loss of $ (425) (in thousands) and adjusted net loss of $ (2,052) (in thousands).
Cost control was evident in GAAP SG&A, which declined to $ 557,443 (in thousands) from $ 581,632 (in thousands), attributed to lower marketing expense and disciplined expense management. Restructuring charges totaled $ 11,359 (in thousands), and the company recorded $2 million in transformation-related SG&A expenses under the Fiscal 2025 Restructuring Plan. To date, total restructuring and transformation costs under the plan were $280 million, including $121 million in cash and $159 million in non-cash charges. The company anticipates approximately $305 million in total program costs and expects the plan to be substantially complete by December 31, 2026.
Liquidity includes $ 284,550 (in thousands) of cash and cash equivalents at September 30, 2026, while inventories were $ 1,075,939 (in thousands), up 4 percent. Operating cash flow for the six-month period was $ 20,065 (in thousands), compared with cash used in operating activities of $ (20,978) (in thousands) in the prior-year period. Purchases of property and equipment were $ (27,233) (in thousands). The filing reports $190 million of revolver borrowings outstanding under a $1.1 billion revolving credit facility.
The updated fiscal 2027 guide retains a mid-single-digit revenue-decline outlook but reduces expected gross-margin expansion to 170 to 220 basis points from the prior 220 to 270 basis points. GAAP operating-income guidance increased to $99 million to $119 million from $96 million to $116 million, while adjusted operating-income guidance remains $140 million to $160 million. Management cited higher fuel and freight costs, planned inventory actions, foreign exchange headwinds, and approximately $45 million of conflict-related Middle East headwinds. The outlook also includes an approximate $70 million benefit from realization of refunds from prior-year IEEPA tariff expenses.
Management, verbatim
We delivered against our revenue expectation and exceeded our operating income outlook.
Kevin Plank, Under Armour President and CEO
As we progress in this transformation, we are driving greater efficiency across our business, sharpening our product offering, and amplifying global marketing to strengthen our brand and improve financial performance.
Kevin Plank, Under Armour President and CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Free cash flow was not reported.
- Dividend amount and dividend policy were not reported.
- Q2 fiscal 2027 revenue and gross-margin guidance were not reported.
- Fiscal 2027 tax-rate guidance was not reported.
- Prior-quarter values for reported quarterly metrics were not reported.
- A Q2 fiscal 2027 GAAP tax rate was not reported.
- Segment-specific revenue drivers for North America, wholesale, apparel, footwear, accessories, and licensing revenues were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Under Armour filed a Form 8‑K announcing its Q2 FY2027 results and updated FY2027 outlook.
Ticker impact
Under Armour reported Q2 FY2027 results with revenue down 7% and updated FY2027 revenue outlook.
likely downside as the revenue decline and updated outlook pressure the stock.
The earnings release contains fresh, material numbers and a revised FY2027 outlook, which typically moves the share price on the day of release.
Market effects
Apparel and footwear sector may see broader pressure as Under Armour signals weaker consumer demand.
U.S. consumer discretionary sentiment could be dampened in the short term.
Limited; primarily impacts U.S. retail and apparel investors.
Counterpoint
If the market overreacts to the revenue decline, a bounce could occur on the back of margin improvement.
Key entities
- ExecutiveKevin Plank
President and CEO of Under Armour who commented on the results.
