Under Armour Reports Q4 Loss, Expands Restructuring Plan to $305M, Issues Weak FY27 Outlook
Summary
Under Armour reported a decline in Q4 and full-year fiscal 2026 revenue and continued net losses, alongside an expanded restructuring plan totaling $305 million, and issued a weak outlook for fiscal 2027.
Key Events
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Q4 and Full-Year Fiscal 2026 Results
Under Armour reported a 1% revenue decrease to $1.2 billion for Q4 and a 4% decrease to $5.0 billion for the full fiscal year 2026. The company posted a net loss of $43 million for Q4 and $496 million for the full year, with gross margin declining 470 basis points in Q4.
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Restructuring Plan Expanded
The company increased its fiscal year 2025 restructuring plan by an additional $50 million, bringing the total expected charges to approximately $305 million. This includes up to $139 million in cash charges and $166 million in non-cash charges, with the plan expected to be substantially complete by December 31, 2026.
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Weak Fiscal 2027 Outlook
Under Armour anticipates a slight year-over-year revenue decline for fiscal 2027, with North America revenue expected to decrease at a low single-digit rate. Adjusted diluted earnings per share are projected to be in the range of $0.08 to $0.12.
Analysis
Under Armour's financial performance continues to be challenged, marked by declining revenue in North America, significant gross margin compression, and ongoing net losses for both the fourth quarter and full fiscal year 2026. The company's decision to increase its restructuring plan by an additional $50 million, bringing the total to $305 million, signals a more extensive and costly overhaul of its operations. The fiscal 2027 outlook projects further slight revenue declines and very modest adjusted earnings per share, indicating a prolonged period of stabilization rather than a return to strong growth.
At the time of this filing, UAA was trading at $5.30 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.5B. 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.