Under Armour, the American sportswear brand, projects a 4-5% year-over-year (YoY) revenue decline for fiscal 2026 (FY26). The forecast includes a 4-5% drop in North American revenue, high single-digit growth in Europe, Middle East, and Africa (EMEA), and a mid-teen percentage decline in the Asia-Pacific region.
Despite the revenue dip, Under Armour anticipates a gross margin increase of 40 to 60 basis points (bps) compared to the previous fiscal year. This is attributed to a favorable product mix, reduced product and freight costs, and positive foreign exchange effects but will be partially offset by unfavorable channel and regional mixes and tariffs, as stated in an official release. Selling, general, and administrative (SG&A) expenses are expected to decline by around 40%, while operating income is forecasted to range between $5-15 million. Adjusted first-quarter operating income is predicted to be between $20-30 million, and adjusted diluted earnings per share are estimated at $0.01-$0.03.
“As we look towards fiscal 2026 amid a complex macroeconomic backdrop, our sharpened execution, alignment, and focus—bolstered by the move to a category-led operating model—equip us to navigate ongoing volatility with resilience. I am confident in the agility we’ve built over the past year, and we are raising our bar of excellence at Under Armour,” said Kevin Plank, president and CEO of Under Armour.
The Under Armour revenue decline was also evident in fiscal 2025 (FY25), which ended on March 31, as the company reported a 9% YoY drop to $5.2 billion. North American revenue fell by 11% YoY to $3.1 billion, while international revenue dropped 6% YoY to $2.1 billion. The gross margin, however, improved by 180 bps to 47.9%. Segment-wise, apparel revenue fell 9% to $3.5 billion, footwear revenue decreased by 13% to $1.2 billion, and accessories revenue rose slightly by 1% to $411 million.
The brand’s wholesale revenue dropped 8% to $3 billion, and direct-to-consumer (DTC) revenue decreased by 11% to $2.1 billion, with e-commerce sales plunging 23% due to reduced promotional activities. Regionally, performance varied, with EMEA remaining flat, while Asia-Pacific and Latin America faced declines of 13% and 6% YoY, respectively.
SG&A expenses rose by 8% YoY to $2.6 billion; however, adjusted expenses fell 2% to $2.3 billion. The company incurred $58 million in restructuring charges, leading to an operating loss of $185 million. On an adjusted basis, operating income stood at $198 million, while adjusted net income reached $135 million. The fiscal year ended with a net loss of $201 million, with adjusted diluted EPS at $0.31, compared to a reported diluted loss per share of $0.47.
For Q4 FY25, Under Armour revenue decline persisted, with an 11% YoY drop to $1.2 billion. North American revenue fell 11% to $689 million, while international revenue decreased 13% to $489 million. Wholesale revenue dropped 10% to $768 million, and DTC revenue declined 15% to $386 million, with owned and operated store sales shrinking by 6% and e-commerce sales plummeting 27%, accounting for 37% of DTC revenue.
“One year into our strategic reset, we are laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth,” added Plank. “Our fourth quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand.”
