Under Armour Reports Q1 FY26 Revenue Down 4% to $1.1 Billion, Expects 6-7% Decline in Q2

Under Armour reported a 4% decrease in Q1 fiscal 2026 revenue to $1.1 billion, with a net loss of $3 million. The company predicts a 6-7% revenue decline in Q2 fiscal 2026, citing tariff-induced supply chain pressures. Under Armour's gross margin increased by 70 basis points to 48.2%, but it remains engaged in its Fiscal 2025 Restructuring Plan, which has incurred $110 million in charges so far.

Under Armour, Inc. (NYSE: UA) reported its first-quarter fiscal 2026 results, with revenue declining by 4% to $1.1 billion, a miss against analyst expectations [1]. The company also reported a net loss of $3 million, with an adjusted net income of $9 million. The stock plunged more than 20% at the open on Friday, reflecting the disappointing performance and guidance [2].

Key financial highlights include:
- Revenue: Revenue decreased 4% year-over-year to $1.1 billion, falling short of the $1.13 billion consensus estimate.
- Gross Margin: Gross margin improved by 70 basis points to 48.2%, driven by favorable foreign exchange, pricing, and product mix.
- Regional Performance: North American revenue decreased 5% to $670 million, while international revenue declined 1% to $467 million. Footwear revenue dropped 14%, while apparel revenue decreased 1% and accessories revenue grew 8%.
- Restructuring Plan: The company's Fiscal 2025 Restructuring Plan has incurred $110 million in charges so far, with a total estimated cost of $140-160 million [3].

For the second quarter of fiscal 2026, Under Armour expects revenue to decline by 6% to 7%, with a low-double-digit percentage decrease in North America and high-single-digit growth in EMEA, partially offset by a low-teens percentage decline in Asia-Pacific. The company anticipates a gross margin decline of 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix [4].

The company's outlook highlights the challenges it faces, particularly in the North American market, where sales are expected to decrease by a mid-to-high single-digit percentage. Under Armour's stock price has been volatile, reflecting investor concerns about its financial performance and the challenges it faces in the market [5].

References:
[1] https://finance.yahoo.com/news/under-armour-shares-tumble-revenue-114028148.html
[2] https://www.tradingview.com/news/tradingview:2a7c9eb2ef4e1:0-under-armour-reports-first-quarter-fiscal-2026-results/
[3] https://www.ainvest.com/news/armour-q2-fy26-guidance-revenue-6-7-operating-income-10m-loss-break-2508/
[4] https://www.stocktitan.net/news/UA/under-armour-reports-first-quarter-fiscal-2026-results-provides-bb5q40uez8f7.html
[5] https://seekingalpha.com/news/4482441-under-armour-non-gaap-eps-of-0_02-misses-by-0_01-revenue-of-1_1b-misses-by-30m