Under Armour (UA) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2026, declined 3% year-over-year to $1.1 billion, with North America down 9% and international up 5%.

• Gross margin improved by 590 basis points to 54.1%, primarily due to $70 million in tariff refunds and supply chain improvements.

• Net income was $1 million; adjusted net income was $21 million, with adjusted diluted EPS at $0.05.

• The company is focused on simplifying its business, reducing SKUs, improving product focus, and executing a disciplined approach to inventory and marketing.

• The transformation strategy emphasizes quality over quantity, with a mandate to sell fewer, higher-value products at full price.

Financial highlights

• Apparel revenue decreased 1.7%, footwear revenue fell 7.7%, and accessories revenue declined 4.4% year-over-year.

• Wholesale revenue dropped 1.6% to $638 million, and direct-to-consumer revenue declined 5.8% to $437 million.

• North America revenue declined 9%, EMEA grew 12%, Asia-Pacific fell 7%, and Latin America rose 8%.

• SG&A expenses increased 2% to $543 million; adjusted SG&A rose 4%.

• Adjusted operating income was $52 million, exceeding the outlook of $30–$40 million.

Outlook and guidance

• Fiscal 2027 revenue is expected to decline at a mid-single-digit rate, with adjusted operating income outlook maintained at $140–$160 million.

• Gross margin expansion of 220–270 basis points is expected, including a 150 basis point benefit from tariff refunds.

• Adjusted SG&A is expected to decline at a low single-digit rate, reflecting tighter cost controls and more focused marketing.

• Q2 revenue is expected to decline high single digits, with adjusted operating income of $10–$20 million and adjusted diluted loss per share of $0.01–$0.03.

• The 2025 restructuring plan is expected to be substantially complete by December 31, 2026.