Under Armour Reports Weak Q4 Performance Amid Sales Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: stocktwits
- Sales Decline: Under Armour reported a 7% drop in North American sales during Q4, despite a 10% increase in international markets, leading to an overall revenue decline of 1% to $1.2 billion, highlighting market pressures amid fierce competition.
- 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.
- Negative Market Reaction: Following the disappointing earnings report, Under Armour's Class A shares plummeted over 15% in premarket trading, poised to open at a five-month low, reflecting investor anxiety regarding the company's future performance.
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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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- Sales Decline: Under Armour reported a 7% drop in North American sales during Q4, despite a 10% increase in international markets, leading to an overall revenue decline of 1% to $1.2 billion, highlighting market pressures amid fierce competition.
- 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.
- Negative Market Reaction: Following the disappointing earnings report, Under Armour's Class A shares plummeted over 15% in premarket trading, poised to open at a five-month low, reflecting investor anxiety regarding the company's future performance.
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- Investment and Hiring Plans: AT&T plans to invest $250 billion over the next five years, with approximately 15% allocated for hiring and training blue-collar technicians to meet the surging demand from AI data centers and increased network usage, indicating a strategic pivot towards blue-collar labor.
- Shifts in Industry Trends: The rise of AI poses a threat to many traditional white-collar jobs, leading to a slowdown in employment growth for new graduates, particularly in marketing, legal, and IT sectors, reflecting significant changes in the economic landscape.
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- Revenue Decline: Under Armour reported a 4% decline in Q4 fiscal 2026 revenue to $5 billion, primarily due to a 3% drop in wholesale revenue, despite a 5% increase in direct-to-consumer sales, reflecting consumer uncertainty and market pressures.
- 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.
See More
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- Ralliant's Earnings Surprise: Ralliant's adjusted Q1 earnings of 57 cents per share exceeded both company guidance and FactSet consensus of 49 cents, leading to a 14% stock increase, reflecting robust demand in the high-precision instruments market.
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See More
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See More
Under Armour Reports Weak Q4 Performance Amid Sales Decline
- Sales Decline: Under Armour reported a 7% drop in North American sales during Q4, despite a 10% increase in international markets, leading to an overall revenue decline of 1% to $1.2 billion, highlighting market pressures amid fierce competition.
- 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.
- Negative Market Reaction: Following the disappointing earnings report, Under Armour's Class A shares plummeted over 15% in premarket trading, poised to open at a five-month low, reflecting investor anxiety regarding the company's future performance.
See More
