The Investor
06 Nov 2025, 15:19
Under Armour Q2 FY2026 Results: Signs of Brand Momentum Amid Turnaround
Under Armour reported Q2 FY2026 revenue of $1.3 billion, down 5% year over year (6% lower on a currency-neutral basis). North America fell 8% to $792 million, while international revenue rose 2% to $551 million, supported by 12% growth in EMEA and 15% in Latin America, offset by a 14% decline in Asia-Pacific. Wholesale sales decreased 6% to $775 million, and direct-to-consumer declined 2% to $538 million, with eCommerce down 8%.
By category, apparel revenue slipped 1% to $936 million, footwear dropped 16% to $264 million, and accessories fell 3% to $113 million. Gross margin declined 250 basis points to 47.3%, affected by tariffs and an unfavorable mix, partly offset by pricing gains. SG&A expenses increased 12% to $582 million, largely due to higher marketing costs and the absence of a prior-year insurance recovery.
Operating income was $17 million, while adjusted operating income reached $53 million. The company posted a net loss of $19 million (diluted loss per share of $0.04); adjusted net income was $15 million (adjusted EPS $0.04).
Under Armour repurchased $25 million of Class C stock during the quarter, retiring 5.2 million shares, and has spent $115 million of its $500 million repurchase plan since May 2024.
CEO Kevin Plank said the quarter exceeded expectations and highlighted strengthening brand momentum in North America.
For FY2026, Under Armour expects revenue to decline 4–5%, with continued weakness in North America and Asia-Pacific, offset by growth in EMEA. Gross margin is projected to fall 190–210 basis points due to higher U.S. tariffs, while SG&A is expected to decline at a mid-teens rate (mid-single digits on an adjusted basis). Adjusted operating income is forecast between $90 million and $105 million, with adjusted EPS between $0.03 and $0.05.
Under Armour reported Q2 FY2026 revenue of $1.3 billion, down 5% year over year (6% lower on a currency-neutral basis). North America fell 8% to $792 million, while international revenue rose 2% to $551 million, supported by 12% growth in EMEA and 15% in Latin America, offset by a 14% decline in Asia-Pacific. Wholesale sales decreased 6% to $775 million, and direct-to-consumer declined 2% to $538 million, with eCommerce down 8%.
By category, apparel revenue slipped 1% to $936 million, footwear dropped 16% to $264 million, and accessories fell 3% to $113 million. Gross margin declined 250 basis points to 47.3%, affected by tariffs and an unfavorable mix, partly offset by pricing gains. SG&A expenses increased 12% to $582 million, largely due to higher marketing costs and the absence of a prior-year insurance recovery.
Operating income was $17 million, while adjusted operating income reached $53 million. The company posted a net loss of $19 million (diluted loss per share of $0.04); adjusted net income was $15 million (adjusted EPS $0.04).
Under Armour repurchased $25 million of Class C stock during the quarter, retiring 5.2 million shares, and has spent $115 million of its $500 million repurchase plan since May 2024.
CEO Kevin Plank said the quarter exceeded expectations and highlighted strengthening brand momentum in North America.
For FY2026, Under Armour expects revenue to decline 4–5%, with continued weakness in North America and Asia-Pacific, offset by growth in EMEA. Gross margin is projected to fall 190–210 basis points due to higher U.S. tariffs, while SG&A is expected to decline at a mid-teens rate (mid-single digits on an adjusted basis). Adjusted operating income is forecast between $90 million and $105 million, with adjusted EPS between $0.03 and $0.05.
