Under Armour (UA) Q1 2026 earnings summary

Executive summary

• Revenue declined 4–4.2% year-over-year to $1.1–$1.13 billion, with North America down 5–5.5% and EMEA/AMEA up 9.6–10%; Asia-Pacific and Latin America saw double-digit declines.

• Gross margin improved by 70 basis points to 48.2%, driven by FX, pricing, and product mix, despite lower sales.

• Operating income rebounded to $3–$3.3 million; adjusted operating income was $24 million, reflecting lower litigation and restructuring charges.

• Net loss narrowed to $2.6–$3 million, with adjusted diluted EPS at $0.02 and reported diluted loss per share at $0.01.

• Transformation efforts focus on brand authenticity, innovation, premiumization, SKU reduction, and operational streamlining.

Financial highlights

• Apparel revenue declined 1–1.5%, footwear fell 14–14.3%, and accessories grew 8–8.1% year-over-year.

• Wholesale revenue decreased 4.6–5%, direct-to-consumer revenue dropped 3–3.5%, and eCommerce revenue declined 12%.

• SG&A expenses decreased 36.7–37% to $530 million, mainly due to lower litigation reserves; adjusted SG&A down 6%.

• Inventory at $1.1 billion, up 2% year-over-year; cash and equivalents at $911 million.

• Operating margin improved to 0.3% from -25.3% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue expected to decline modestly, with profitability projected to be about half of last year due to $100 million in new tariff costs and softer demand.

• Q2 revenue expected to decline 6–7% year-over-year; North America down low double digits, EMEA/AMEA up high single digits, Asia-Pacific down low teens.

• Q2 gross margin expected to decline 340–360 bps, mainly from tariffs and channel mix.

• Q2 adjusted operating income expected at $30–$40 million; adjusted EPS $0.01–$0.02.

• Restructuring plan expected to cost $140–$160 million, with completion targeted by end of fiscal 2026.