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Under Armour Fiscal Q1 2027 Results Overview

On August 7, 2026, Under Armour, Inc. (NYSE: UAA, UA) unveiled its preliminary financial figures for the first quarter of fiscal 2027, which concluded on June 30, 2026. These results illustrate the ongoing challenges the brand faces in a shifting market landscape. Despite a decline in revenue, the company maintains a commitment to profitability while adapting its operational strategies.

Financial Performance Highlights

Revenue and Profitability

The company's total revenue dipped by 3% to $1.1 billion compared to the previous year, reflecting a broader trend in the sporting goods market. North American sales saw a notable decline of 9%, amounting to $610 million. In contrast, international revenue rose by 5% to $490 million, driven largely by strong performances in specific regions such as EMEA where revenue surged by 12%.

However, difficulties persisted in key markets like Asia-Pacific, where revenues fell by 7%. The company reported that wholesale revenue contracted by 2% and direct-to-consumer (DTC) sales fell 6%, with eCommerce contributing only 29% to total DTC revenue, indicating a shift in consumer purchasing behaviors.

Category Performance

In terms of product categories, apparel revenue decreased modestly by 2% to $734 million, whereas footwear sales declined by 8%. Accessory revenues also suffered a 4% decrease. Despite these challenges, Under Armour's gross margin improved significantly by 590 basis points to 54.1%, mainly due to refunds related to tariff costs from preceding fiscal years.

Expense Management and Restructuring

Selling, general and administrative expenses rose by 2% to $543 million as the company invests in transforming its brand image and optimizing its operational processes. The ongoing Fiscal 2025 Restructuring Plan has guided a total of $266 million in charges to date, with projections indicating that the plan will be largely completed by December 31, 2026.

Updated Fiscal 2027 Outlook

Looking ahead, Under Armour has revised its fiscal 2027 forecast. Revenue is expected to decline at a mid-single-digit percentage rate, down from earlier predictions of a slight decline. This adjustment stems largely from decreased demand in North America and Asia-Pacific regions. The company emphasizes a balanced approach in pursuing short-term revenue while bolstering long-term brand health.

Future Strategies

Moving forward, Under Armour aims to enhance its gross margin by focusing on pricing strategies and reducing discounting, despite external pressures from supply chain disruptions and unfavorable foreign exchange rates. The brand also plans to carefully manage operational expenses, aiming for a low-single-digit decrease in adjusted selling, general, and administrative expenses.

Conclusion

As Under Armour navigates through its current market environment, the company is committed to delivering high-quality products while ensuring sustainable profitability. The brand's efforts to refine its product portfolio and improve operational efficiencies reflect its dedication to maintaining a competitive edge in the athletic apparel space.

For those interested in learning more about Under Armour's latest endeavors and future outlook, a conference call will be held at 8:30 a.m. Eastern Time today to discuss these updates in further detail.