Under Armour Q1 Revenue Misses Estimates, Stock Tumbles Amid Weak Guidance and Tariff Worries

Under Armour's Q1 revenue fell 4% YoY to $1.13bn, missing estimates. The company reported a GAAP net loss of $3m and adjusted net income of $9m. Wholesale revenue declined 5% and direct-to-consumer revenue fell 3%. The company expects Q2 revenue between $1.055bn and $1.066bn, with adjusted diluted earnings per share between 1 to 2 cents.

Under Armour, Inc. (NYSE:UA) reported its first-quarter fiscal 2026 results, which fell short of analyst expectations. The athletic apparel maker’s shares plunged 13.6% following weak guidance and missed Wall Street forecasts. The company posted adjusted earnings per share of $0.02, slightly below the analyst estimate of $0.03, while revenue declined 4% year-over-year (YoY) to $1.1 billion, missing the consensus estimate of $1.13 billion [1].

Under Armour’s North American revenue decreased 5% to $670 million, while international revenue declined 1% to $467 million. Footwear was particularly weak, with revenue dropping 14% to $266 million, while apparel revenue decreased 1% to $747 million. Accessories provided a bright spot, growing 8% to $100 million. Gross margin improved by 70 basis points to 48.2% primarily due to favorable foreign exchange, pricing, and product mix [1].

The company expects gross margin to decline 340 to 360 basis points in the second quarter, largely due to supply chain headwinds and anticipated impacts from tariffs [1]. Under Armour’s restructuring plan, announced in May 2024, is expected to cost between $140 million and $160 million, with $71 million in restructuring charges already recorded by the end of the first quarter [1].

For the second quarter, Under Armour expects revenue to decline 6-7%, with a low-double-digit percentage decrease in North America and a low-teens percent decline in the Asia-Pacific region, partially offset by high-single-digit growth in EMEA [1].

Under Armour logged a narrower loss and lower revenue in its fiscal first quarter, with adjusted earnings per share of 2 cents, in line with estimates according to analysts polled by FactSet. Revenue fell 4% to $1.13 billion, matching analyst estimates. Revenue in North America fell 5% to $670 million, while international revenue declined 1% to $467 million. Wholesale revenue edged down 5% to $649 million, while direct-to-consumer revenue fell 3% to $463 million [2].

The company expects quarterly gross margin to decline by 340 to 360 basis points due to potential tariff-related supply chain snags, but said favorable foreign exchange and pricing benefits would partially offset the decline. It expects adjusted profit per share of between 1 cent and 2 cents, compared with estimates of 26 cents [3].

References:
[1] https://www.investing.com/news/earnings/under-armour-shares-tumble-after-revenue-miss-weak-guidance-4179921
[2] https://www.marketwatch.com/story/under-armour-posts-narrower-loss-lower-revenue-in-1q-88e2f18f
[3] https://www.reuters.com/business/retail-consumer/under-armour-expects-sales-fall-more-us-tariffs-could-hit-demand-2025-08-08/