Under Armour, Inc. (UA)

Under Armour reported first-quarter fiscal 2027 revenue down 3 percent to $1.1 billion on 7 August 2026 1.

North America revenue fell 9 percent to $610 million, while international revenue rose 5 percent to $490 million 1.

Gross margin, the share of each sale left after the cost of making the goods, rose 590 basis points to 54.1 percent, mainly on refunds of tariff costs the company had expensed in fiscal 2026 1.

Operating income was $47 million and net income was $1 million 1.

The company now expects full-year revenue to fall at a mid-single-digit rate, against an earlier outlook of a slight decline, citing softer demand in North America and Asia-Pacific 1. It kept its adjusted earnings per share range of $0.08 to $0.12 1.

Kevin Plank, the founder and chief executive, said the company is making progress in "building a more focused Under Armour" in a "challenging consumer demand environment" 1.

For the year to 31 March 2026, revenue fell 4 percent to $5.0 billion 7. The net loss was $496 million, including a $247 million valuation allowance, an accounting write-down of U.S. federal tax assets 7.

The open question is whether the tariff refunds arrive as assumed, since the adjusted operating income outlook includes an approximate $70 million benefit from refunds of prior-year tariff expenses 1.

Kevin Plank founded Under Armour in 1996 and led it as chief executive until 2019 2. He then served as executive chair and brand chief from January 2020 through March 2024, and has been president and chief executive again since April 2024 2.

In the year to March 2024, net revenues fell 3.4 percent as the company faced higher promotions and discounting and lower wholesale demand, mostly in North America 14. Wholesale revenue dropped 6.5 percent and direct-to-consumer revenue, its own stores and websites, rose 3.0 percent 14.

On 15 May 2024 the board approved a restructuring plan to cut costs and sharpen operations 3. In September 2024 the board raised it by $70 million, to $140 million to $160 million of expected charges 3.

In the year to March 2025, net revenues fell 9.4 percent, with North America down 11.4 percent and Asia-Pacific down 13.5 percent 3. The company said it was deliberately cutting discounting and promotions in e-commerce, which helped lift gross margin 180 basis points to 47.9 percent 3.

That year also carried $261 million of litigation expense tied to the settlement of a shareholder class action 2. The company also decided in September 2024 to leave its Rialto, California distribution center, which it had exited by the next year-end 32.

In the year to March 2026, net revenues fell 3.8 percent as North America dropped 7.9 percent and footwear dropped 10.8 percent 2. EMEA grew 8.6 percent 2. Gross margin fell 240 basis points to 45.5 percent, which trade press tied mainly to higher tariffs 27.

On 13 November 2025 Under Armour and Stephen Curry ended their partnership and the Curry Brand sub-label left the company 11. The year's results carried $69.7 million of non-cash contract termination costs, primarily from that separation 2.

The net loss was $496 million, mostly because valuation allowances were recorded against previously recognized U.S. federal deferred tax assets 72. On 20 February 2026 the U.S. Supreme Court struck down certain tariffs imposed under the emergency economic powers law, and the company began pursuing refunds 2.

In May 2026 Reuters reported that Plank's plan involved cutting about 25 per cent of product lines and shifting to higher-priced items in training, running and team sports 4. Reza Taleghani joined as chief financial officer in February 2026 2.

Apparel

Apparel is the biggest line: shirts, shorts, jackets and tights engineered to keep the wearer warm, or cool and dry 2. Under Armour sells it in compression, fitted and loose fits under names such as HeatGear and ColdGear 2.

In the year to March 2026, apparel, footwear and accessories were about 68, 22 and 8 percent of net revenues, and licensing about 2 percent 2.

In the first quarter of fiscal 2027, apparel revenue fell 2 percent to $734 million 1.

Footwear

Footwear covers running, training, basketball, cleated sports, recovery and outdoor shoes, built on cushioning platforms such as HOVR and Charged Cushioning 2. Footwear revenue fell 8 percent to $245 million in the latest quarter, after a 10.8 percent decline in the year to March 2026 12.

RTINGS calls the Velociti Elite 3, a carbon-plated racing shoe, a great marathon racing shoe for midfoot strikers who keep a high cadence, and scores it 8.1 for half and full marathon racing 12.

Believe in the Run, in a review dated 23 October 2025, lists the shoe at $250 and calls it the brand's best effort to date, though it finds the shoe firm underfoot 13.

Accessories and licensing

Accessories are mainly gloves, bags, headwear and socks 2. Licensees make products such as collegiate apparel, team uniforms and eyewear under the Under Armour name 2.

Accessories revenue was $414 million in the year to March 2026, up 1 percent, and fell 4 percent to $96 million in the latest quarter 71.

Where it sells

Wholesale, sales to retailers such as sporting goods chains, was 57 percent of net revenues in the year to March 2026, and direct-to-consumer, its own stores and websites, was 41 percent 2. North America was about 58 percent of net revenues, and U.S. sales were $2.6 billion 2.

In the latest quarter wholesale revenue fell 2 percent to $638 million, direct-to-consumer fell 6 percent to $437 million, and e-commerce fell 12 percent 1. At the end of March 2026 it had 443 Brand and Factory House stores, 198 in North America and 245 abroad 2.

Plants, stores and people

Substantially all products are made by unaffiliated manufacturers 2. In the year to March 2026, 40 primary contract manufacturers in 17 countries made its apparel and accessories, about 65 percent of it in Jordan, Vietnam, Indonesia and Cambodia 2.

Its offices are in a complex it owns on the Baltimore Peninsula 2. It leases its main distribution sites in Sparrows Point, Maryland and Mount Juliet, Tennessee, about 2.5 million square feet combined 2.

The company had about 14,100 employees, whom it calls teammates, at the end of March 2026, about 10,100 of them in its stores 2. Kevin Plank leads as chief executive, with Reza Taleghani as chief financial officer and Eric Liedtke as chief marketing officer 2.

Rivals

Reuters named Nike, Lululemon, On Holding, Adidas and Puma as the competition that makes stabilizing the business hard 4.

Current problems

A federal appeals court ruled in January 2026 that the company must repay $90 million of insurance proceeds that carriers had funded toward a settled shareholder class action 2. The company recorded $98.5 million of litigation reserve expense for the dispute with its insurers 2.

Tariffs remain a cost: the 10-K says a court ruled the replacement tariffs illegal on 7 May 2026 but left them in effect pending appeal 2. The company expects about $35 million of headwinds this year from the Middle East conflict 1.

The umbrella, in words

The main brand is Under Armour, with registered product names including HeatGear, ColdGear and HOVR 2. The Curry Brand basketball sub-label has left the company 11.

The list of significant subsidiaries names a European company in the Netherlands, a retail company in Maryland, two Hong Kong companies and one in Cyprus 9. The list says smaller subsidiaries are omitted 9.

In Japan the company has a license agreement with a partner in which it holds a non-controlling interest 2. It has the same kind of arrangement with an Australian partner that sells teamwear online 2.

Kevin Plank beneficially owns all outstanding Class B shares, which carry 10 votes each, against one vote for Class A and none for Class C, so he holds majority voting control 2. On 15 May 2026 the company reported 188,839,506 Class A, 34,450,000 Class B and 203,035,386 Class C shares outstanding 2.

Prem Watsa and Fairfax Financial Holdings reported beneficial ownership of 45,300,872 Class A shares, 24.0 percent of that class, in an amended Schedule 13D for an event on 13 May 2026 8.

Under Armour now expects revenue for the year ending 31 March 2027 to decline at a mid-single-digit rate, against its earlier outlook of a slight decline 1. It expects North America to fall at a mid-single-digit rate and Asia-Pacific and EMEA at low-single-digit rates 1.

It expects gross margin to rise 220 to 270 basis points, with about 150 basis points of that from tariff cost recoveries realized in the first quarter 1.

It expects operating income of $96 million to $116 million, and adjusted operating income of $140 million to $160 million 1. The same outlook includes about $35 million of Middle East headwinds 1.

FashionUnited reported that diluted loss per share is expected between $0.01 and $0.05, with adjusted diluted earnings per share reaffirmed at $0.08 to $0.12 5.

The restructuring plan is expected to cost about $305 million in total, with $266 million incurred so far, and to be substantially complete by December 31, 2026 1.

Trade press reported that about $116 million of the costs so far are cash charges and $150 million are non-cash charges 6.

At the end of June 2026 the company held $396 million in cash and had $200 million drawn on its $1.1 billion revolving credit facility 1.

On June 15 funds from restricted investments settled the remaining principal and interest on the Senior Notes due 2026, which the company said had been satisfied and discharged during fiscal 2026 1.

In May 2026 Plank said that building "world-class, modern marketing excellence is now our highest priority", and the outlook then included about $30 million of added marketing investment 7.

Footwear Magazine reported that the company will launch a refreshed UA Basketball line, and that Curry Brand colorways and apparel run until October 2026 11.

The company expects further litigation and changes to tariff rates during fiscal 2027, and the timing of any insurer ruling on interest is unknown 2.