Under Armour closed fiscal 2026 with $5 billion in revenue, a new CFO, and a candid admission that profitability is not improving fast enough. Fiscal 2027 guidance sent shares down nearly 19 percent. Under Armour’s recovery clock resets again.
Under Armour shares fell nearly 19 percent at the open on May 12, 2026, after fiscal 2027 earnings guidance came in well below analyst expectations – overshadowing a fourth quarter in which revenue marginally beat consensus. The stock was trading at $4.92 in the hours following the earnings call, down from a prior close of $6.43, as investors weighed guidance pointing to another year of revenue contraction.
A new CFO walks in, looks around, and asks a hard question
The earnings call marked the public debut of Reza Telghani, who joined Under Armour earlier in 2026 as Chief Financial Officer, succeeding Dave Bergman after his 21 years at the company. Telghani’s opening assessment was unusually pointed for an incoming executive. He described a brand whose product quality surprised him on arrival, illustrating the gap with an anecdote: his 23-year-old daughter – not previously a UA consumer – tried the brand’s Meridian top, called it one of the best she had ever owned, and asked, “Why don’t you sell this?” His conclusion:
“The product is great. The issue is marketing.”
Kevin Plank, President and Chief Executive Officer, echoed the CFO’s assessment in prepared remarks, acknowledging that profitability is not improving quickly enough even as management remains confident in the turnaround. Plank also argued that the company’s core problem is not product quality but how the brand communicates it. “Our currency is product, but our voice is overwhelming storytelling,” he said, adding that Under Armour has not been meeting that standard. Management described fiscal 2027 as a year of stabilization, with fiscal 2028 as the expected return to sustainable growth.
The Curry Brand walked out, taking a point of growth with it
The outlook also reflects the wind-down of the Curry Brand, the basketball line built around Stephen Curry. The CFO said that exit accounts for roughly one percentage point of the fiscal 2027 revenue headwind; excluding it, underlying revenue would be “closer to flat.” Under Armour defines its stabilization range as -2 to +2 percent, which would place the adjusted trend within target.
A quarter that beat on paper and missed where it matters
In the quarter ended March 31, 2026, revenue came in at $1.2 billion, slightly above the $1.17 billion analyst consensus, though down 1 percent year over year. North America declined 7 percent to $641 million, driven primarily by a wholesale decrease. International revenue advanced 10 percent on a reported basis to $539 million, moderating to 3 percent in constant currency. Telghani said margins tightened as tariffs and heavier promotions weighed on results, partly offset by foreign exchange and channel mix.
| Under Armour – Income Statement | ||||
| Q4, ended March 31 ($ millions)* | ||||
| 2026 | % net rev. | 2025 | % net rev. | |
| Net revenues | 1,171 | 100.0% | 1,181 | 100.0% |
| Cost of goods sold | 679 | 58.0% | 630 | 53.3% |
| Gross profit | 492 | 42.0% | 551 | 46.7% |
| Selling, general & administrative expenses | 518 | 44.2% | 607 | 51.4% |
| Restructuring charges | 8 | 0.7% | 16 | 1.3% |
| Income (loss) from operations | -34 | -2.9% | -72 | -6.1% |
| Interest income (expense), net | -9 | -0.7% | -3 | -0.3% |
| Other income (expense), net | – | – | -5 | -0.4% |
| Income (loss) before income taxes | -42 | -3.6% | -80 | -6.8% |
| Income tax expense (benefit) | 1 | 0.1% | -12 | -1.0% |
| Income (loss) from equity method investments | – | – | – | – |
| Net income (loss) | -43 | -3.7% | -67 | -5.7% |
*Figures in USD millions, rounded. EUR conversion required at May 12, 2026 publication-date rate. Source: Under Armour, Inc. Q4 fiscal 2026 earnings release, May 12, 2026.
Direct-to-consumer (DTC) revenue grew 5 percent to $406 million, with owned-and-operated stores up 8 percent. Wholesale edged down 3 percent to $748 million.
| Under Armour – Net Revenues by Distribution Channel | |||
| Q4, ended March 31 ($ millions)* | |||
| 2026 | 2025 | Change | |
| Wholesale | 748 | 768 | -2.6% |
| Direct-to-consumer | 406 | 386 | 5.1% |
| Net sales | 1,153 | 1,154 | 0.0% |
| License revenues | 27 | 24 | 10.9% |
| Corporate Other (1) | -9 | 3 | – |
| Total net revenues | 1,171 | 1,181 | -0.8% |
*Figures in USD millions, rounded. EUR conversion required at May 12, 2026 publication-date rate. (1) Corporate Other includes net revenues from foreign currency hedge gains and losses managed centrally; year-on-year change not meaningful. Source: Under Armour, Inc. Q4 fiscal 2026 earnings release, May 12, 2026.
Full year: footwear down 11%, restructuring plan extended
While Q4 delivered mixed signals, the full fiscal year tells a more troubling story: continued revenue erosion, a footwear business under significant pressure, and a net loss exacerbated by accounting charges. For the full fiscal year, revenue declined 4 percent to $5.0 billion. North America fell 8 percent to $2.9 billion; international grew 4 percent to $2.1 billion, flat in constant currency. The company posted a full-year net loss of $496 million, including a $247 million valuation allowance on US federal deferred tax assets. Adjusted net income was $50 million.
| Under Armour – Income Statement | ||||
| Full year, ended March 31 ($ millions) | ||||
| 2026 | % net rev. | 2025 | % net rev. | |
| Net revenues | 4,966 | 100.0% | 5,164 | 100.0% |
| Cost of goods sold | 2,708 | 54.5% | 2,690 | 52.1% |
| Gross profit | 2,259 | 45.5% | 2,475 | 47.9% |
| Selling, general & administrative expenses | 2,294 | 46.2% | 2,602 | 50.4% |
| Restructuring charges | 128 | 2.6% | 58 | 1.1% |
| Income (loss) from operations | -163 | -3.3% | -185 | -3.6% |
| Interest income (expense), net | -30 | -0.6% | -6 | -0.1% |
| Other income (expense), net | -7 | -0.1% | -13 | -0.3% |
| Income (loss) before income taxes | -201 | -4.0% | -205 | -4.0% |
| Income tax expense (benefit) | 295 | 5.9% | -3 | -0.1% |
| Income (loss) from equity method investments | – | – | – | – |
| Net income (loss) | -496 | -10.0% | -201 | -3.9% |
Figures in USD millions, rounded. Source: Under Armour, Inc. fiscal 2026 annual earnings release, May 12, 2026.
By category, footwear was the weakest performer, down 11 percent to $1.1 billion – the steepest decline across the portfolio. Apparel declined 2 percent to $3.4 billion; accessories gained 1 percent to $414 million.
| Under Armour – Net Revenues by Product Category | |||
| Full year, ended March 31 ($ millions) | |||
| 2026 | 2025 | Change | |
| Apparel | 3,395 | 3,451 | -1.6% |
| Footwear | 1,076 | 1,206 | -10.8% |
| Accessories | 414 | 411 | 0.9% |
| Net sales | 4,886 | 5,068 | -3.6% |
| Licensing revenues | 107 | 95 | 13.5% |
| Corporate Other (1) | -27 | 1 | – |
| Total net revenues | 4,966 | 5,164 | -3.8% |
Figures in USD millions, rounded. (1) Corporate Other includes net revenues from foreign currency hedge gains and losses managed centrally; year-on-year change not meaningful. Source: Under Armour, Inc. fiscal 2026 annual earnings release, May 12, 2026.
Under Armour also extended its Fiscal 2025 Restructuring Plan, raising total program costs to approximately $305 million from a prior estimate of $255 million. The plan is expected to be substantially complete by Dec. 31, 2026.
The product reset UA is aiming for: fewer products, higher margins, and a more premium positioning.
Plank cited two product developments as markers of the brand’s repositioning. The first: runner Sharon Locady’s second consecutive Boston Marathon victory in the UA Velocity Elite 3 footwear. “That level of repeat performance is not just impressive, it’s definitive,” Plank said, using the achievement to argue that Under Armour can win at the performance end of running – its largest footwear growth opportunity.
The second: the UA Bounce Cotton Tee, a $65 T-shirt launching in late May in Asia-Pacific and exclusively through Dick’s Sporting Goods and UA’s DTC channels in the US, with EMEA following in late summer. Built with Pima Cotton and the brand’s proprietary Neolast recyclable stretch fiber, it is meant as an everyday performance essential bridging gym and lifestyle use – what Plank described as the clearest expression of UA’s premiumization intent: fewer products, higher innovation density, stronger margins.
Over the past two years, Under Armour has reduced its product assortment by 25 percent. A newly appointed Chief Merchandising Officer is expected to drive further cuts. Wholesale is projected to be flat to up slightly in fiscal 2027, with factory house stores the strongest-performing DTC channel.
| Under Armour – Net Revenues by Segment | |||
| Full year, ended March 31 ($ millions) | |||
| 2026 | 2025 | Change | |
| North America | 2,859 | 3,106 | -7.9% |
| EMEA | 1,181 | 1,087 | 8.6% |
| Asia-Pacific | 719 | 755 | -4.8% |
| Latin America | 234 | 215 | 8.7% |
| Corporate Other (1) | -27 | 1 | – |
| Total net revenues | 4,966 | 5,164 | -3.8% |
Figures in USD millions, rounded. (1) Corporate Other includes net revenues from foreign currency hedge gains and losses managed centrally; year-on-year change not meaningful. Source: Under Armour, Inc. fiscal 2026 annual earnings release, May 12, 2026.
Fiscal 2027: worse before better, with a tariff lifeline built in
Adjusted operating income is guided at $140–$160 million, incorporating an approximately $70 million benefit from assumed IEEPA tariff refunds, offset by roughly $35 million in Middle East supply chain headwinds and $30 million in incremental marketing investment. Most of the tariff refund is expected to land in the first quarter.
Q1 fiscal 2027 is guided as the weakest revenue period of the year – down 2–3 percent overall, with North America falling 7–8 percent and EMEA rising in the low teens, partly from a timing shift out of Q4. Management described Q1 as “the trough, not the trend,” with growth rates expected to improve progressively through the balance of the year.
In China, Plank described a market that had been declining by a double-digit percentage eighteen months ago and has now stabilized toward flat to marginally positive growth, as the brand exits performance marketing in favor of brand-led campaigns. Under Armour expects positive free cash flow for the full fiscal year. The repayment of its senior notes – covered by $605 million in restricted investments set aside at year-end – is due in June 2026, removing a significant near-term balance sheet liability.
Hold, but watch the clock
The numbers were complicated enough. The market’s response was not. Shares fell nearly 19 percent — not because the quarterly revenue figure disappointed, but because UA’s own forecast for fiscal 2027 landed at less than half what analysts had penciled in.
Cristina Fernández of Telsey Advisory Group put it plainly: EPS guidance of $0.08–$0.12 compares with a FactSet consensus of $0.23, and the revenue outlook – a slight decline – runs against the 1.7 percent growth analysts had expected. With North America still at the low end of UA’s own stabilization range, Fernández concluded the results “highlight a competitive environment in sporting goods apparel.”
The deeper question now is one of patience. Some analysts read the miss as the necessary cost of a reset done properly: deferred profits, concentrated investment, and a brand being rebuilt from the inside out. Others are less forgiving. As analysts noted in early commentary, the longer the timeline extends, the harder it becomes to distinguish a turnaround from a value trap. For now, consensus sits at “Hold”, which in this context feels less like confidence and more like wait-and-see.
