Under Armour Slides As Revenue Miss, Weak Outlook Overshadow EPS Beat

Under Armour Inc. (NYSE: UAA ) reported first-quarter fiscal 2027 results Friday, delivering better-than-expected adjusted earnings despite revenue falling short of analyst estimates.

Adjusted EPS of 5 cents beat the 2-cent estimate, while revenue of $1.098 billion missed the $1.109 billion estimate and fell 3.2% year over year, or 4.4% in constant currency.

Adjusted operating income was $52 million.

Shares traded lower following the results as investors weighed the revenue shortfall, softer demand across North America and Asia-Pacific, and the company's reduced full-year revenue outlook.

Margin Expansion Offsets Revenue Pressure Gross margin expanded 590 basis points to 54.1%, mainly reflecting refunds tied to IEEPA tariff costs expensed in fiscal 2026.

The benefit was partly offset by unfavorable foreign exchange, regional and channel mix, and pricing headwinds.

SG&A rose 2% to $543 million, while adjusted SG&A increased 4% to $541 million.

North America revenue fell 9% to $610 million, while international revenue rose 5% to $490 million.

EMEA grew 12%, Latin America rose 8% and Asia-Pacific declined 7%.

North America operating income was $171 million at a 28% margin, while EMEA posted $28 million at a 10.1% margin.

Wholesale, DTC And Product Trends Wholesale revenue fell 2% to $638 million, while direct-to-consumer revenue declined 6% to $437 million.

Apparel revenue fell 2% to $734 million, footwear dropped 8% to $245 million and accessories declined 4% to $96 million.

Inventory fell 3% to $1.1 billion.

Operating cash flow was $109.1 million.

Quarter-end cash totaled $396 million, long-term debt was $591.2 million and $200 million was outstanding under the $1.1 billion revolver.

Read Also: This Under Armour Analyst Is No Longer Bullish On Delayed Turnaround Restructuring Costs Reach $266 Million Under Armour recorded $6 million of restructuring and transformation costs during the quarter.

Costs under the Fiscal 2025 Restructuring Plan have reached $266 million, with total program costs expected at about $305 million.

Q2 And FY2027 Outlook For the second quarter, Under Armour expects GAAP diluted EPS of a 6-cent to 3-cent loss versus a 4-cent estimate.

Adjusted diluted EPS is expected at a 3-cent to 1-cent loss versus a 5-cent estimate.

For fiscal 2027, revenue is now expected to decline at a mid-single-digit rate, reflecting softer demand in North America and Asia-Pacific.

GAAP diluted EPS guidance was lowered to a 5-cent to 1-cent loss from a 4-cent loss to breakeven, versus a 9-cent estimate.

Adjusted diluted EPS guidance remains 8 cents to 12 cents versus a 21-cent estimate, and adjusted operating income remains $140 million-$160 million.

The outlook includes about $70 million of benefits from prior-year IEEPA tariff refunds and about $35 million of headwinds related to the Middle East conflict.

UAA Price Action: Under Armour shares were down 3.75% at $6.16 at the time of publication on Friday, according to Pro data.

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