Under Armour Cuts Fiscal 2027 Margin Outlook After Revenue Falls 6.9%

Under Armour reported a 6.9% year-over-year revenue decline for its fiscal second quarter and cut its full-year gross-margin expansion forecast, while keeping its revenue and adjusted operating-income outlooks unchanged.

Revenue totaled $1.241743 billion for the three months ended Sept. 30, 2026, compared with $1.333380 billion in the same period a year earlier. Gross margin was 47%, down 30 basis points from a year earlier. Operating income was $14.8 million, or $24.9 million on an adjusted basis. The company posted a net loss of $425,000 and diluted loss per share of $0.00.

Under Armour now expects fiscal 2027 gross-margin expansion of 170 to 220 basis points. Its previous range was 220 to 270 basis points, so both ends of the forecast moved down by 50 basis points.

The company still expects revenue to decline at a mid-single-digit rate. Its forecast for adjusted operating income remains $140 million to $160 million, and its adjusted diluted earnings-per-share outlook remains $0.08 to $0.12.

Under Armour cited fuel and freight costs, planned inventory actions and foreign-exchange headwinds as factors behind the lower margin outlook. It estimates the Middle East conflict will create a $45 million headwind.

The fiscal-year outlook also includes about $70 million in benefits from refunds of prior-year IEEPA tariff expenses. Under Armour realized that recovery in fiscal Q1 2027, and about 150 basis points of the expected gross-margin improvement reflects it.

“We delivered against our revenue expectation and exceeded our operating income outlook,” Under Armour President and CEO Kevin Plank said. The quarter was the second of the company’s fiscal year, which ends March 31, 2027.