Under Armour Reports Second Quarter Fiscal 2026 Results and Future Outlook

Under Armour's Fiscal 2026 Second Quarter Financial Results

Under Armour, Inc. (NYSE: UAA, UA) has released its unaudited financial outcomes for the second quarter of fiscal 2026, concluding on September 30, 2025. The report showcases both victories and hurdles in their financial narrative, reflecting broader economic challenges and the company's strategic responses.

Overview of Financial Results

The company's revenue witnessed a decrease of 5% year-over-year, totaling $1.3 billion, and a drop of 6% when adjusted for currency fluctuations. Specifically, North America, a vital market for the brand, saw an 8% decline, resulting in a revenue of $792 million. On the contrary, international sales demonstrated a slight growth of 2%, amounting to $551 million, despite a 1% decrease in constant currency terms. Notably, the EMEA region experienced a robust increase of 12%, while the Asia-Pacific region faced a 14% decline.

Performance by Product Category

In analyzing revenue streams, apparel stood at $936 million with a minor drop of 1%. Footwear, however, faced a notable decline of 16%, totaling $264 million, while accessories decreased by 3% to $113 million. These figures underscore the ongoing challenges in maintaining product traction, especially within footwear, a critical area for brand identity.

Gross Margin and Operational Costs

The gross margin fell by 250 basis points to 47.3%, mainly attributed to supply chain issues, particularly increased tariffs and an unfavorable mix of channels and regions. This decline indicates areas the company needs to address to recover profitability. However, strategic actions, such as pricing adjustments and favorable foreign exchange impacts, provided some compensation against these adverse factors.

SGA expenses rose by 12% to $582 million, partly influenced by the absence of a prior year's legal fee recovery. When adjusted for specific restructuring expenses, SGA increased by 9%, primarily due to higher marketing expenses in preparation for future product launches.

Restructuring Plan and Future Outlook

The company has been navigating a considerable restructuring initiative initiated in May 2024, projected to cost approximately $160 million. As of this report, Under Armour has recorded $103 million in restructuring and impairment charges. Looking ahead, the corporate outlook estimates a revenue decline of 4-5% in fiscal 2026, with anticipated declines primarily in North America and Asia-Pacific. Despite these challenges, improvements are expected in the EMEA region.

The forecast for gross margin indicates a potential drop between 190-210 basis points, reflecting continued pressure from tariff rates and changing consumer preferences. However, a reduction in SGA expenses by mid-teens percentage is anticipated, attributed to effective cost management and restructuring savings.

Conclusion

Under Armour's recent financial performance highlights the brand's resilience amid industry challenges. CEO Kevin Plank emphasized brand momentum in North America as a positive signal in their turnaround strategy. As Under Armour focuses on improvement and brand strength, it remains to be seen how effective these measures will be in stabilizing its financial metrics for the rest of fiscal 2026. The next steps will be crucial for shaping the company's competitive landscape in an evolving market.

For shareholders and stakeholders interested in the complete fiscal performance and future projections, Under Armour will host a conference call on November 6, 2025, detailing further insights on its financial health and strategic pathway.