Under Armour posts Q2 FY2027 revenue decline and revises FY2027 margin outlook
Under Armour reported second‑quarter fiscal 2027 revenue down 7 % year‑over‑year to $1.2 billion (reported) and noted a 9 % decline in international revenue on a constant‑currency basis. Gross margin fell 30 basis points to 47.0 % (reported). The company updated its FY2027 outlook, cutting full‑year gross‑margin expansion to 170‑220 basis points (down from 220‑270 bps) and forecasting adjusted operating income of $140 million‑$160 million and adjusted EPS of $0.08‑$0.12. CEO Kevin Plank said the transformation is progressing but higher fuel, freight and Middle‑East conflict costs are weighing on margins.
Why it matters
The lower margin guidance signals tighter profit outlook, which analysts note could pressure the stock (the company’s own press release highlights the $70 million tariff‑refund benefit offset by $45 million conflict‑related headwinds). The revised operating‑income and EPS ranges set new expectations for investors’ earnings models.
Key facts
- 1Revenue decreased 7 % to $1.2 billion (reported). prnewswire.com
- 2International revenue decreased 7 % to $509 million, down 9 % on a constant‑currency basis. prnewswire.com
- 3Gross margin decreased 30 basis points to 47.0 % (reported). prnewswire.com
- 4Adjusted operating income was $25 million (adjusted, non‑GAAP). prnewswire.com
- 5Adjusted EPS was $0.00 (adjusted, non‑GAAP). prnewswire.com
- 6Inventory increased 4 % to $1.1 billion (reported). prnewswire.com
Summary written by AlphAI AI Desk from 20 of 23 sources. Not investment advice. Figures are as stated by the linked sources.