Under Armour 2026 Q1 Earnings Sharp Turnaround as Net Income Surges 99.1%

Under Armour (UAA) reported its fiscal 2026 Q1 earnings on Aug 8, 2025, revealing a dramatic improvement in net income despite a revenue decline. CEO Kevin A. Plank emphasized a “bold reinvention” strategy aimed at strengthening the brand. Despite a 4.2% revenue drop to $1.13 billion, the company’s net loss narrowed by 99.1% to $-2.61 million compared to the prior year. The report highlighted a strategic shift toward team sports and influencer-led marketing, with Plank expressing optimism about long-term value creation.

Revenue
Total revenue declined by 4.2% to $1.13 billion in 2026 Q1, compared to $1.18 billion in 2025 Q1.

Earnings/Net Income
Under Armour’s net loss narrowed significantly to $-2.61 million in 2026 Q1, a reduction of 99.1% compared to the $-305.43 million loss in 2025 Q1. On a per-share basis, the company narrowed losses to $0.01 from $0.70, an improvement of 98.6%.

Price Action
The stock price of Under Armour surged 3.03% during the latest trading day but declined 17.20% during the most recent full trading week and 21.50% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Under Armour shares after a quarterly revenue drop and holding for 30 days has performed poorly over the past three years. The strategy’s CAGR was -7.60%, with a total return of -20.49% versus a benchmark return of 47.10%. It also had a maximum drawdown of 0.00% and a Sharpe ratio of -0.15, indicating suboptimal risk-adjusted returns and significant underperformance relative to the market.

CEO Commentary
Kevin A. Plank, CEO of Under Armour, highlighted the company's "bold reinvention" to become a “sharper, more focused brand” centered on sports, style, and innovation. He emphasized progress in brand health, digital engagement, and cultural relevance, stating, “We’re stronger than we were 6 months ago and will be even stronger 6 months from now.” Plank acknowledged challenges, including higher tariffs and softer demand, but expressed confidence in the company’s strategy. He also highlighted efforts to premiumize the brand, simplify SKUs, and shift to team sports and influencer-led marketing. Plank reiterated the mission to “rebuild stronger” and noted the growing interest in joining the company, saying, “Our phone is ringing from talent that wants to join us.”

Guidance
Under Armour expects Q2 2026 revenue to decline 6% to 7% year-over-year. North America revenue is projected to fall in the low double-digits, while APAC is expected to decline in the low teens. EMEA is forecasted to grow in the high single-digits. Gross margin is expected to decrease by 340 to 360 basis points due to tariff costs and product mix changes. Adjusted operating income is projected to range between $30 million to $40 million, with adjusted diluted EPS expected to be between $0.01 and $0.02. The company anticipates operating income to be roughly half of fiscal 2025 levels, with mitigations expected to take effect in fiscal 2027.

Additional News
In recent weeks, several major developments have impacted the broader market. OpenAI officially launched GPT-5, a highly anticipated update to its AI model, which has sparked significant investor interest and speculation about its potential impact on the tech sector. In addition, the U.S. government released a major policy statement outlining its support for the development of brain-computer interface technologies, indicating a growing emphasis on innovation in this space. Another notable event was the announcement by Apple that its stock had reached a 5-year high following a positive performance in the week following Trump’s remarks on tariffs.