Under Armour cuts full-year revenue outlook as North American demand retreats
Softening consumer demand across North America and Asia-Pacific is pulling the athletic apparel sector through a deeper correction than many had anticipated, and Under Armour Inc (NYSE:UA) handed investors a measure of that…
Key takeaways
- Under Armour reported fiscal first-quarter revenue of $1.1 billion, a 3% year-over-year decline that came in just below the $1.11 billion consensus and sent the stock down about 2%.
- Adjusted diluted earnings per share of $0.05 beat the $0.02 consensus estimate.
- The company widened its fiscal 2027 revenue forecast to a mid-single-digit percentage decline, stepping back from a prior projection for only a slight contraction.
- North American revenue, the core market, fell 9% to $610 million, anchoring the guidance cut, while total international revenue grew 5% to $490 million.
- Under Armour maintained its full-year operating income guidance of $96 million to $116 million and adjusted diluted EPS of $0.08 to $0.12.
Softening consumer demand across North America and Asia-Pacific is pulling the athletic apparel sector through a deeper correction than many had anticipated, and Under Armour Inc (NYSE:UA) handed investors a measure of that pressure with its fiscal first-quarter results. The company reported revenue of $1.1 billion, a 3% year-over-year decline that came in marginally below the Wall Street consensus of $1.11 billion, sending the stock down about 2%. Under Armour also widened its fiscal 2027 revenue forecast to a mid-single-digit percentage decline, stepping back from a previous projection for only a slight contraction.
Quarter results: an earnings beat the revenue line complicates
Adjusted diluted earnings per share of $0.05 cleared the $0.02 consensus estimate, showing the company can protect the bottom line even as top-line volumes pull back. The channel breakdown tells most of the story: wholesale revenue fell 2% to $638 million and direct-to-consumer dropped 6% to $437 million. Within DTC, eCommerce was the softer leg, falling 12%, while owned-and-operated stores declined 3%.
By category, footwear carried the steepest drop at 8%, bringing that segment to $245 million. Apparel fell 2% to $734 million and accessories slipped 4% to $96 million.
North America and Asia-Pacific anchor the guidance cut
North American revenue, the company's core market, fell 9% to $610 million. That figure sits at the center of the revised forecast: Under Armour now expects North American revenue to decline at a mid-single-digit rate in fiscal 2027, steeper than a previous call for a low-single-digit contraction.
The international picture is more fractured. Total international revenue grew 5% to $490 million, with EMEA up 12% and Latin America gaining 8%. Asia-Pacific fell 7%, and the revised full-year guidance now projects low-single-digit declines in both Asia-Pacific and EMEA, reversing earlier expectations for low-single-digit growth in each region. One quarter's regional outperformance has already been overtaken by the demand outlook for the year ahead.
Profitability held; the premium pivot faces a spending cycle test
Under Armour maintained its full-year operating income guidance at $96 million to $116 million and its adjusted operating income range of $140 million to $160 million. Adjusted diluted earnings per share remains projected at $0.08 to $0.12.
CEO Kevin Plank said the company is simplifying its business to operate with greater discipline, aiming to protect profitability while investing in a sharper product portfolio through clearer storytelling, with the goal of building a more premium Under Armour that earns demand at full price. The macro caveat in that thesis is direct: a premium repositioning works when consumers are expanding discretionary spend, and the revised guidance signals that across North America and Asia-Pacific, that environment is moving the wrong way through fiscal 2027.
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