UNDER ARMOUR REPORTS FIRST QUARTER FISCAL 2027 RESULTS; MAINTAINS FULL-YEAR PROFITABILITY OUTLOOK WHILE UPDATING REVENUE EXPECTATIONS

BALTIMORE, Aug. 7, 2026 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) today announced unaudited financial results for the first quarter of fiscal 2027, which ended June 30, 2026. Results are reported in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). References to "constant currency" and "adjusted" results are non-GAAP financial measures; reconciliations are provided below.

"As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook," said Under Armour President and CEO Kevin Plank. "By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price."

First Quarter Fiscal 2027 Review

• Revenue decreased 3 percent to $1.1 billion (down 4 percent constant currency).
  • North America revenue declined 9 percent to $610 million, while international revenue increased 5 percent to $490 million (up 2 percent constant currency). Within international markets, EMEA revenue increased 12 percent (up 10 percent constant currency), Asia-Pacific decreased 7 percent (down 10 percent constant currency), and Latin America increased 8 percent (up 1 percent constant currency).
  • Wholesale revenue decreased 2 percent to $638 million and direct-to-consumer (DTC) revenue decreased 6 percent to $437 million. Within DTC, owned-and-operated store revenue declined 3 percent, and eCommerce revenue decreased 12 percent, representing 29 percent of total DTC revenue for the quarter.
  • By category, apparel revenue decreased 2 percent to $734 million, footwear revenue declined 8 percent to $245 million, and accessories revenue decreased 4 percent to $96 million.
• Gross margin increased 590 basis points to 54.1 percent, primarily due to refunds received associated with the recovery of International Emergency Economic Powers Act ("IEEPA") tariff costs expensed in fiscal 2026. This was partially offset by unfavorable foreign exchange impacts, unfavorable regional and channel mix, and pricing headwinds.
• Selling, general and administrative (SG&A) expenses increased 2 percent to $543 million, primarily due to targeted investments to strengthen the brand as well as continued disciplined operating expense management. Excluding $2 million in transformation expenses related to the Fiscal 2025 Restructuring Plan, adjusted SG&A increased 4 percent to $541 million.
• Restructuring charges totaled $4 million.
• Operating income was $47 million. Excluding transformation and restructuring charges, adjusted operating income was $52 million.
• Net income was $1 million. Adjusted net income was $21 million, which excludes transformation and restructuring charges.
• Diluted earnings per share was $0.00; adjusted diluted earnings per share was $0.05.
• Inventory decreased 3 percent to $1.1 billion.
• Liquidity: Cash and cash equivalents totaled $396 million at quarter-end and $200 million of borrowings were outstanding under its $1.1 billion revolving credit facility. On June 15 upon maturity, funds from the company's restricted investments were used to settle all remaining principal and interest payments to holders of the Senior Notes due 2026, which, as previously disclosed, were satisfied and discharged during fiscal 2026.

Fiscal 2025 Restructuring Plan

In the first quarter, the company recorded $4 million in restructuring charges and $2 million in transformation-related SG&A expenses, for a total of $6 million under its Fiscal 2025 Restructuring Plan. To date, the company has incurred $266 million in total restructuring and transformation costs, including $116 million in cash and $150 million in non-cash charges. Total program costs under the plan are anticipated to be approximately $305 million. The company expects the plan to be substantially complete by December 31, 2026.

Updated Fiscal 2027 Outlook

The company has updated its fiscal 2027 outlook. Compared with fiscal 2026, key highlights of the company's outlook include:

• Revenue is now expected to decline at a mid-single-digit percentage rate compared with the prior outlook of a slight decline. The revised outlook is driven by softer demand, particularly in North America and Asia-Pacific. The company remains focused on balancing near-term revenue opportunities with actions that strengthen long-term brand health, including disciplined marketplace management and protection of full-price selling. The updated outlook incorporates a mid-single-digit percent decline in North America (prior low-single-digit decline), and low-single-digit declines in both Asia-Pacific (prior low-single-digit increase) and EMEA (prior low-single-digit increase).
• Gross Margin is still expected to increase 220 to 270 basis points versus the prior year's gross margin. Approximately 150 basis points of this improvement is due to the recovery of IEEPA-related tariff costs expensed in fiscal 2026 realized in the first quarter. Excluding this benefit, the company continues to expect gross margin expansion driven by pricing actions, lower discounting, and a more favorable channel mix, partially offset by supply chain headwinds related to the conflict in the Middle East and unfavorable foreign exchange impacts.
• SG&A expense, including transformation expenses related to the Fiscal 2025 Restructuring Plan, is now expected to decrease at a high-single-digit rate versus the prior expectation for a low-single-digit decline. Excluding transformation expenses, Adjusted SG&A is now expected to decrease at a low-single-digit rate (prior low-single-digit rate increase). The updated outlook reflects actions to align operating expenses with the current demand environment while continuing to prioritize the company's highest-return strategic investments.
• Operating Income is still expected to be in the range of $96 million to $116 million. Excluding expected transformation expenses and restructuring charges, Adjusted Operating Income is still expected to be $140 million to $160 million. To achieve this, the company expects to substantially offset the impact of lower revenue through disciplined expense management and a more agile and disciplined operating model while continuing to invest in the areas most critical to strengthening the brand. This outlook includes an approximate $70 million benefit from the realization of refunds from prior-year IEEPA tariff expenses and approximately $35 million in headwinds related to the conflict in the Middle East.
• Diluted Loss Per Share is now expected to range from $0.01 to $0.05 versus the prior expectation of breakeven to a loss per share of $0.04. Excluding anticipated transformation expenses and restructuring charges, the expectation for Adjusted Diluted Earnings Per Share remains $0.08 to $0.12.

Conference Call and Webcast

Under Armour will hold its first-quarter fiscal 2027 conference call today at approximately 8:30 a.m. Eastern Time. The call will stream live at https://about.underarmour.com/investor-relations/financials and will be available for replay approximately three hours after the live event.

Non-GAAP Financial Information

This press release discusses "constant currency" and "adjusted" results, as well as the company's "adjusted" forward-looking estimates for the fiscal year ending March 31, 2027. Management believes this information is valuable for investors seeking to compare the company's operational results across periods, as it provides clearer insight into underlying performance by excluding these impacts. Constant currency financial data removes fluctuations caused by foreign currency exchange rates. Adjusted financial measures exclude the effects of the company's litigation reserve expense (and related insurance recoveries) and the company's Fiscal 2025 Restructuring Plan, its associated charges, and related tax effects, as well as the valuation allowance against its U.S. federal deferred tax assets. Management states that these adjustments are not essential to the company's core operations. The reconciliation of non-GAAP figures to the most directly comparable GAAP financial measure is included in the supplemental financial information accompanying this release. All per-share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be viewed in isolation; they should be considered alongside the company's reported results prepared in accordance with GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similar measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., based in Baltimore, Maryland, is a global performance brand committed to empowering athletes everywhere. Since 1996, the company has advanced how athletes train, compete, and recover through innovative apparel, footwear, and accessories. In partnership with elite athletes and game changers, Under Armour is shaping the future of sport and inspiring those who strive for more. Learn more at https://about.underarmour.com.

Forward-Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, plans, strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, future financial condition or results of operations, growth prospects and strategies, potential restructuring efforts (including the scope, anticipated charges and costs, the timing of these measures, and the anticipated benefits of our restructuring initiatives), expectations related to promotional activities, freight, product cost pressures, foreign currency effects, the impact of global economic conditions (including changes in trade policy and inflation) on our results of operations, liquidity and use of capital resources, expectations related to tariffs, the development and introduction of new products, the execution of marketing strategies, benefits from significant investments, and impacts from litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential," or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe the expectations reflected in the forward-looking statements are reasonable, they are inherently uncertain. We cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Several important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: changes in general economic or market conditions (such as rising inflation and potential impacts of changes and uncertainties related to government fiscal, monetary, tax and trade policies) that could influence overall consumer spending or our industry; the impact of global events beyond our control, including military conflicts, public health events, and the effects of changes in the global trade environment, such as the imposition of new tariffs and countermeasures thereto, on our profitability; increased competition that may cause us to lose market share, lower product prices, or significantly increase marketing efforts; fluctuations in the costs of raw materials and commodities we use in our products and supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes in the financial health of our customers; our ability to effectively develop and launch new, innovative products and engage our consumers; our ability to accurately forecast consumer shopping and preferences and consumer demand for our products and to effectively manage our inventory; our ability to successfully execute any restructuring plans and achieve expected benefits; loss of key customers, suppliers, or manufacturers; our ability to further expand our business globally and drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; our ability to effectively market and maintain a positive brand image; our ability to successfully manage or achieve expected outcomes from significant transactions and investments; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation, or application of our global operating and financial reporting information technology system; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations; risks related to data security or privacy breaches; and our potential exposure to and the financial impact of litigation and other proceedings. The forward-looking statements here reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect unanticipated events.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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UNDER ARMOUR, INC.

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CONDENSED CONSOLIDATED BALANCE SHEETS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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COMPANY-OWNED & OPERATED DOOR COUNT

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SOURCE Under Armour, Inc.