Under Armour’s European business continues to shine, delivering the company’s only major market growth in Q1 fiscal year 2026, as margins improved sharply in the region. North America and Asia, however, remain under pressure, hit by weak wholesale demand and consumer caution. The brand is betting on a new global marketing push fronted by stars Toni Rüdiger and Stephen Curry to drive its premium positioning.
Positive signs at Under Armour: CEO Kevin Plank has been back in office for 1.5 years, and early signs of stabilization are emerging. In Q1 FY26, the US sportswear manufacturer lifted its gross margin to 48.2 percent, up 0.7 percentage points from the previous year. Sales in Europe rose almost 10 percent, driven by the premium strategy, while US revenue declined.
Key figures for Q1 FY26
- Total revenue (-4.2%): $1.134 billion (€1.032bn)
- Operating income (GAAP): $3.3 million (€3.0m)
- Operating income (adjusted): $24.4 million (€22.2m)
- Net income (GAAP): -$2.6 million (-€2.37m)
- Net income (adjusted): $8.6 million (€7.83m)
- Ebitda (estimated, GAAP): $32.3 million (€29.39m)
- Gross margin (+0.7 pp): 48.2%
Europe posts near double-digit growth
Under Armour continued its growth trajectory in the EMEA region, increasing sales by 9.6 percent to $248.6 million (€226.23m, currency-adjusted +6%) in the first quarter. This made Europe the only major market with almost double-digit growth, driven by increases in both direct-to-consumer and wholesale business. Particularly noteworthy: the operating margin in the region climbed from 9.0 percent in the previous year to 15.9 percent, which is attributed to improved pricing, a more favorable product mix and efficiency gains in distribution.
“We’re focused on strengthening our brand positioning with premium products and increasing our average selling prices through innovative offerings, optimizing our top-volume programs, and creating a more compelling full, price-to-value proposition. Regardless of the backdrop, this is about building a fearless, thoughtful, and stronger Under Armour.” Kevin Plank, CEO
North America weakness and overseas declines
Under Armour continued to face pressure in the US in the first quarter: sales in North America fell by 5.5 percent to $670.3 million (€610.97m), mainly because of weaker wholesale sales and the effects of subdued consumer sentiment. Other international markets also showed a downward trend. In the Asia-Pacific region, revenues fell by 10.1 percent to $163.4 million (€148.69m), and in Latin America by as much as 15.3 percent to $54.6 million (€49.69m). Both regions also recorded significant declines in operating margins, which significantly slowed the group’s global margin progress outside Europe.
Apparel up, shoes down, accessories rise
Apparel remains the dominant category, with a share of sales of just under 68 percent, while footwear is in significant decline, with almost a quarter of the business; accessories account for only a small share but recorded the strongest growth and could prove to be a stabilizing factor in the product portfolio.
Product mix Q1 FY 2026
- Apparel (-1.5%): $746.6 million (€679.41m); previous year $757.8 million (€689.59m)
- Footwear (-14.3%): $265.9 million (€241.97m); previous year $310.4 million (€282.46m)
- Accessories (+8.1%): $100.1 million (€91.09m); previous year $92.5 million (€84.18m)
Outlook: US weak, Europe growing, new marketing offensive
In the second quarter, Under Armour expects a sales decline in the US in the low double-digit percentage range, while EMEA is expected to grow and Asia-Pacific to decline by double digits. The gross margin is expected to decline by 3.4 to 3.6 points, with adjusted operating profit targeted at $30 to $40 million (€27.3m to €36.4m). CEO Plank is focusing on targeted marketing investments, including a new multi-year brand campaign designed to sharpen the premium image. The campaign’s figureheads are professional footballer Toni Rüdiger, who recently presented special Mansory soccer boots, and basketball superstar Stephen Curry, who already unveiled a new UA model at the NBA All Star Game.
