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Under Armour Reports Q2 Fiscal 2027 Results

Under Armour, Inc. recently presented its unaudited financial results for the second quarter of fiscal 2027, which concluded on September 30, 2026. This reporting provides insights into the company’s current standing against expectations and its strategic responses to recent market conditions.

Key Financial Highlights

For the second quarter, Under Armour reported revenue of $1.2 billion, reflecting a 7% decrease from the same period last year. The revenue breakdown shows that sales in North America fell by 7% to $737 million, while international sales also declined by 7% to $509 million. Notably, different regions experienced varied performance; while EMEA and Asia-Pacific saw declines of 9%, Latin America experienced a slight increase of 3%.

The company's wholesale revenue decreased by 6% to $725 million, and direct-to-consumer (DTC) sales fell by 8% to $494 million. Within DTC, the performance of physical stores dropped by 7%, and eCommerce sales decreased by 12%, which accounted for 27% of total DTC revenue.

By product categories: apparel revenue fell by 6% to $880 million, footwear saw a significant decline of 11% to $234 million, and accessory sales decreased by 7% to $105 million. The overall gross margin decreased slightly, primarily due to the unfavorable impacts of foreign currency exchanges and regional pricing strategies.

Management's Response

Kevin Plank, Under Armour's President and CEO, expressed confidence in the company's strategy, stating, "We delivered against our revenue expectation and exceeded our operating income outlook. As we progress in this transformation, we are driving greater efficiency across our business, sharpening our product offerings, and amplifying global marketing to strengthen our brand and improve financial performance."

Despite these setbacks, Under Armour managed to reduce selling, general, and administrative expenses by 4% to $557 million due to lowered marketing costs and stringent cost management practices. However, it is noteworthy that restructuring charges reached $11 million.

Looking Ahead: Updated Fiscal Outlook

Seeking to remain resilient amid market pressures, Under Armour has adjusted its fiscal outlook for 2027. The company now anticipates that revenue will continue to decline at a mid-single-digit percentage rate. The gross margin expectation has been revised to show a projected increase of 170 to 220 basis points, a slight change from previous forecasts that anticipated a larger improvement.

Operating income is estimated to range between $99 million and $119 million, representing a promising adjustment from earlier estimates. The future outlook remains cautious, particularly in light of rising costs related to supply chains and ongoing global conflicts impacting operational expenses.

Investor Communication

Under Armour will host a conference call and webcast on November 6, 2026, at approximately 8:30 a.m. Eastern Time to discuss these results in detail. The call is expected to provide additional insights into the corporate strategies employed to navigate these challenging conditions.

Conclusion

As Under Armour adjusts its approach in response to fiscal realities, the brand continues to affirm its commitment to innovation in performance apparel. With a focus on operational efficiency and strategic marketing, the company strives to not only bolster its revenue streams but also regain growth momentum as it moves forward into the coming quarters. Investors and stakeholders are encouraged to stay tuned for further updates as the company implements its transformation plans.