Under Armour Q1 Revenue Misses, Full-Year Outlook Cut on Softer Demand
UAA sits 50% above its 52-week low of $4.13.
Summary
Under Armour reported a 3% revenue decline in Q1 FY2027 and cut its full-year revenue outlook, signaling worsening demand in North America and Asia-Pacific. Adjusted profitability held steady, but the GAAP loss outlook widened.
Key Events · Earnings and Guidance · UAA
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Q1 Revenue Miss
Revenue fell 3% to $1.1 billion, driven by a 9% drop in North America and a 7% decline in Asia-Pacific. Wholesale and DTC channels both weakened.
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Full-Year Revenue Outlook Cut
Management now expects a mid-single-digit revenue decline for FY2027, down from a prior slight decline, due to softer demand in North America and Asia-Pacific.
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Gross Margin Surge
Gross margin expanded 590 basis points to 54.1%, primarily from refunds of prior-year IEEPA tariff costs, partially offset by unfavorable mix and FX.
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Adjusted EPS Maintained
Adjusted diluted EPS was $0.05 in Q1; full-year adjusted EPS outlook held at $0.08-$0.12, supported by cost discipline and tariff recoveries.
Analysis · UAA · Manufacturing
Under Armour's Q1 revenue fell 3% to $1.1 billion, missing expectations as North America sales dropped 9%. The company slashed its full-year revenue outlook to a mid-single-digit decline from a prior slight decline, citing weaker demand in North America and Asia-Pacific. While gross margin jumped 590 basis points to 54.1% due to tariff refunds, adjusted EPS of $0.05 barely kept the bottom line positive. The maintained adjusted full-year EPS outlook of $0.08-$0.12 offers some stability, but the GAAP loss per share guidance widened, reflecting ongoing restructuring costs. This earnings report underscores the deepening revenue challenges in Under Armour's core market, even as cost controls and tariff recoveries protect near-term profitability.
At the time of this filing, UAA was trading at $6.20 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $4.13 to $8.15. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.