Under Armour Q1 2026 Earnings Call Highlights: Revenue Declines and Restructuring Progress

Under Armour reported Q1 2026 revenue of $1.1 billion, a 4% decline, with North America revenue down 5% due to decreased full-price wholesale and lower e-commerce sales. EMEA revenue increased 10%, while APAC revenue decreased 10%. The company's gross margin increased by 70 basis points to 48.2%, and SG&A expenses decreased 37% to $530 million. Operating income was $3 million, and adjusted diluted EPS was $0.02. Inventory increased 2% to $1.1 billion, and cash balance was $911 million. The company estimated $100 million in additional tariff-related costs for fiscal '26.

Under Armour (NYSE: UA) reported its Q1 2026 financial results, reflecting a 4% decline in revenue to $1.1 billion, despite a 70 basis point increase in gross margin to 48.2%. The company's North American revenue fell 5%, driven by decreased full-price wholesale sales and lower e-commerce sales. In contrast, EMEA revenue increased 10%, while APAC revenue decreased 10%. Wholesale revenue declined 5%, and direct-to-consumer revenue fell 3%, with e-commerce sales down 12%. Licensing revenues increased 12%, while apparel revenue declined 1%, footwear revenue dropped 14%, and accessories revenue grew 8%.

The company's SG&A expenses decreased 37% to $530 million, and operating income was $3 million, with adjusted diluted EPS at $0.02. Inventory increased 2% to $1.1 billion, and the cash balance stood at $911 million. Under Armour estimated additional tariff-related costs of $100 million for fiscal '26.

The results indicate a challenging quarter for Under Armour, with revenue declines in key markets and a continued focus on gross margin improvement. The company's strategy to boost long-term margins and brand positioning through reduced promotional activity and a shift towards full-price sales contributed to the DTC and e-commerce declines. The company's ability to navigate these challenges and maintain operational progress will be crucial in the coming quarters.

[1] https://www.nasdaq.com/articles/under-armour-ua-q1-revenue-falls-42
[2] https://finance.yahoo.com/news/under-armour-inc-uaa-q1-070551849.html