Financials Market: Under Armour Cuts Revenue Outlook, Keeps Profit Targets

Under Armour reported a 3% year-on-year revenue decline in Q1 of fiscal 2027 to $1.1 billion and has lowered its full-year revenue outlook to a mid-single-digit decline due to weaker demand, particularly in North America and Asia-Pacific. North America revenue fell 9% to $610 million while international revenue rose 5% to $490 million, with EMEA up 12%. Gross margin improved by 5.9 percentage points to 54.1% (partly due to reimbursement of prior duty costs). Operating income was $47 million (adjusted $52 million) and net income was $1 million (adjusted $21 million). Restructuring charges were $6 million in Q1, with cumulative program costs of $266 million and an expected total of about $305 million; the program is to be largely completed by end-December 2026. The company reaffirmed its operating income and adjusted EPS targets and emphasized cost discipline and a premium strategy.