Under Armour Reports Q4 2026 Earnings with Mixed Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
- Earnings Performance: Under Armour's Q4 non-GAAP EPS of -$0.03 misses expectations by $0.01, indicating ongoing challenges in profitability that may affect investor confidence.
- Revenue Breakdown: Total revenue stands at $1.17 billion, down 0.8% year-over-year, with North America revenue declining 7% to $641 million, while international revenue increased by 10% to $539 million, highlighting potential growth in international markets.
- Category Performance: Apparel and footwear revenues remained flat at $778 million and $282 million, respectively, while accessories grew by 2% to $94 million, demonstrating resilience in the accessories category that could provide opportunities for future product line expansion.
- Fiscal 2027 Outlook: Revenue is expected to decline slightly in FY 2027, with gross margin projected to increase by 220 to 270 basis points, and operating income anticipated between $96 million and $116 million, reflecting a cautiously optimistic outlook during the company's transformation process.
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Analyst Views on UAA
Wall Street analysts forecast UAA stock price to fall
19 Analyst Rating
4 Buy
12 Hold
3 Sell
Hold
Current: 5.990
Low
4.00
Averages
5.69
High
9.00
Current: 5.990
Low
4.00
Averages
5.69
High
9.00
About UAA
Under Armour, Inc. is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories for men, women and youth. Its primary business operates in four geographic segments: North America, comprising the United States and Canada, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America. Its apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). Its footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Its accessories primarily include athletic performance gloves, bags, headwear and socks. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce Websites and brand and factory house stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Margin Pressure: The gross margin for Q4 decreased by 470 basis points year-over-year to 42%, with adjusted gross margin down 360 basis points to 43.1%, indicating significant external cost impacts, particularly from U.S. tariffs contributing 260 basis points of pressure.
- Future Outlook: Management anticipates a slight revenue decline in fiscal 2027, primarily due to the exit of the Curry brand, although gross margin is expected to expand by 220 to 270 basis points, reflecting strategic adjustments in product focus and brand value enhancement.
- Restructuring Plan: Under Armour is implementing a restructuring plan with an estimated total cost of approximately $305 million, expected to be substantially complete by December 31, aimed at enhancing operational efficiency through SKU reduction and a focus on premium products, despite ongoing market challenges.
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- Margin Erosion: The company's gross margin suffered a 470-basis-point hit, falling to 42% from 46.7% last year due to rising tariffs and product costs, directly impacting profitability and raising concerns among investors.
- Pessimistic Outlook: For fiscal 2027, Under Armour anticipates a slight decline in sales, with diluted loss per share expected to range from breakeven to $0.04, significantly lower than the $1.14 estimate, indicating a challenging road ahead.
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See More
