Under Armour Beats Q2 Earnings Estimates Despite 7% Revenue Decline, Maintains Fiscal 2027 Outlook

Under Armour Inc. (NYSE:UAA) reported better-than-expected second-quarter fiscal 2027 results, with adjusted earnings reaching breakeven despite declining sales across its major markets and product categories. The sportswear company maintained its full-year guidance as it continues implementing operational improvements and brand restructuring initiatives.

For the quarter ended September 30, 2026, adjusted earnings were $0.00 per share, compared with analysts’ expectations for a loss of $0.01 per share. Revenue reached approximately $1.24 billion, slightly above the consensus forecast of $1.23 billion, although sales declined 7% year over year.

North American and International Sales Decline

Under Armour reported a 7% decrease in North American revenue to $737 million, while international revenue also fell 7% to $509 million. Excluding currency movements, international sales declined 9%.

All three major product categories recorded lower revenue during the quarter.

Apparel sales decreased 6% to $880 million, while footwear revenue dropped 11% to $234 million. Accessories revenue declined 7% to $105 million.

The figures reflected continued pressure on consumer demand as Under Armour works to reposition its brand and improve its product offering.

Operating Performance Exceeds Management Expectations

Despite lower revenue, Under Armour reported adjusted operating income of $25 million, exceeding its internal expectations.

Gross margin declined 30 basis points to 47.0%, reflecting unfavourable currency movements, changes in sales channels and regional mix, and pricing pressures.

These factors were partially offset by supply chain efficiencies and a more favourable product mix.

President and Chief Executive Officer Kevin Plank highlighted the company’s progress in its ongoing transformation.

“We met our revenue expectations and delivered operating income above our forecast,” Plank said.

“As our transformation advances, we are improving efficiency throughout the business, refining our product portfolio and increasing global marketing efforts to strengthen the brand and enhance financial performance.”

Under Armour Maintains Fiscal 2027 Earnings Guidance

Under Armour reaffirmed its financial outlook for fiscal 2027, forecasting adjusted diluted earnings of $0.08 to $0.12 per share.

The guidance remains substantially below the analyst consensus estimate of $0.81 per share.

The company also maintained its expectation for a mid-single-digit percentage decline in annual revenue.

Adjusted operating income is projected to range between $140 million and $160 million for the fiscal year.

The unchanged guidance indicates that management continues to anticipate near-term sales challenges while pursuing improvements in operating efficiency and profitability.

Brand Transformation Remains Central to Recovery Strategy

Under Armour’s second-quarter performance demonstrated progress in cost management and operating discipline, although revenue continued to decline across geographic regions and product categories.

The company’s adjusted earnings beat and stronger-than-expected operating income provided positive indicators, but weaker footwear sales and lower international revenue highlighted ongoing challenges.

Management remains focused on streamlining operations, strengthening its product portfolio and expanding global marketing initiatives to support the brand’s longer-term recovery.

Investors will monitor whether these measures can stabilise sales and improve profitability as Under Armour progresses through the remainder of fiscal 2027.

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