Under Armour (NYSE:UAA) reported second-quarter fiscal 2026 results that came in slightly ahead of expectations, although its full-year profit guidance fell short of analyst forecasts. Shares inched up modestly in premarket trading as of 07:10 ET.
The sportswear manufacturer posted earnings of $0.04 per share, beating consensus estimates of $0.02, on revenue of $1.33 billion, just above the expected $1.31 billion. Sales, however, fell 5% year-over-year — or 6% on a currency-neutral basis — reflecting softer consumer demand and regional shifts.
Gross margin contracted by 250 basis points to 47.3%, pressured by higher supply chain expenses, increased tariffs, and a less favorable channel mix, the company said. Gains from pricing improvements and foreign exchange helped partially offset those headwinds.
Excluding transformation and restructuring charges, adjusted operating income came in at $53 million.
For the full fiscal year 2026, Under Armour now expects earnings per share between $0.03 and $0.05, below the $0.06 Wall Street consensus, with revenue projected to decline 4%–5%.
The company anticipates high-single-digit declines in North America and Asia-Pacific, which it expects will be partially offset by growth in the EMEA region. Gross margin is forecast to fall by 190–210 basis points, primarily due to rising U.S. tariffs, though pricing gains and currency tailwinds should help cushion the blow.
Under Armour projects operating income between $19 million and $34 million, or $90 million to $105 million on an adjusted basis. Meanwhile, SG&A expenses are expected to decline in the mid-teens, or mid-single digits on an adjusted basis, supported by cost-cutting measures and reduced marketing spending.
In a leadership update, the company announced that Reza Taleghani will assume the role of Executive Vice President and Chief Financial Officer in February 2026, succeeding long-time CFO David Bergman, who will stay on through fiscal 2027 to oversee a smooth transition.