Under Armour (UA) Q3 2026 earnings summary

Executive summary

• The company is advancing its turnaround with a focus on execution, simplification, and accountability, supported by leadership changes and a new operating model that enhances collaboration and speed.

• Brand health and digital engagement are improving, especially among younger athletes, with positive consumer response to product, storytelling, and distribution.

• Product innovation and segmentation are rebuilding pricing power and driving higher ASPs, though footwear remains challenged and is being reset with a focus on fewer, higher-impact franchises.

• Net revenues for the quarter ended December 31, 2025, decreased 5.2% year-over-year, with declines in both wholesale and direct-to-consumer channels, and across apparel, footwear, and accessories.

• Net loss for the quarter was $430.8 million, driven by restructuring charges, increased litigation reserves, and a significant income tax expense due to valuation allowances on deferred tax assets.

Financial highlights

• Q3 revenue declined 5% year-over-year to $1.33 billion, slightly better than outlook due to timing shift in wholesale deliveries.

• Gross margin declined 310 basis points to 44.4%, mainly due to supply chain headwinds, higher U.S. tariffs, and a more promotional environment.

• Operating loss was $150 million; adjusted operating income was $26 million, exceeding outlook.

• Net loss was $430.8 million, including a $247 million valuation allowance on U.S. deferred tax assets; adjusted net income was $37 million.

• Adjusted diluted EPS was $0.09, with reported diluted loss per share of $1.01 due to non-cash tax valuation allowance and restructuring charges.

Outlook and guidance

• Full-year revenue expected to decline ~4%, an improvement from prior 4%-5% decline guidance.

• North America revenue to decline ~8%, EMEA to grow ~9%, APAC to decline ~6%.

• Full-year gross margin expected to decline by ~190 basis points, mainly due to tariffs and mix.

• Adjusted operating income expected at ~$110 million, at the high end of previous guidance.

• Adjusted diluted EPS expected at $0.10-$0.11, aided by favorable tax developments.