Under Armour cuts revenue outlook as North America sales drop 9%

Company swings to tariff-refund profit despite demand weakness

The results showed Under Armour’s profit driven by tariff-related refunds while the company cut its full-year revenue outlook and reported a 9% decline in North America sales, reflecting softer consumer demand in its largest markets.

The company posted a quarterly profit of $545,000, or break-even on a per-share basis, compared with a loss of $2.61 million, or a loss of 1 cent a share, a year earlier. On an adjusted basis, the company reported earnings of 5 cents a share, above the 2 cents analysts polled by FactSet expected.

Revenue fell 3% to $1.1 billion, meeting Wall Street’s expectations. Wholesale revenue declined 1.6% to $638.5 million.

North America, Under Armour’s largest market, posted revenue of $609.8 million, down 9% from the prior year. That decline was partially offset by a 5% increase in international revenue, though the gains were not enough to prevent the overall revenue drop.

Gross margin expanded 590 basis points to 54.1%, which the company attributed primarily to tariff refunds.

For fiscal 2027, the company said it expects revenue to decline at a mid-single-digit percentage rate, a downward revision from its prior outlook of a slight decline. Under Armour cited softer demand in both North America and Asia-Pacific for the change.

The company guided for adjusted earnings of 8 cents to 12 cents a share for the full fiscal year, compared with analysts’ expectations of 11 cents a share. Under Armour said it still anticipates adjusted operating income of $140 million to $160 million, which includes a $70 million benefit from tariff refunds and approximately $35 million in headwinds related to the war in the Middle East.

“As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook,” Chief Executive Kevin Plank said.

The company said it remains focused on balancing near-term revenue opportunities with actions that strengthen long-term brand health, including disciplined marketplace management and protection of full-price selling. Shares fell 2.73%.