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Under Armour Plunges 13.6% on Weak Q1 Earnings and Grim Outlook
8 Aug
Summary
- Q1 earnings miss analyst estimates
- Revenue declines 4% year-over-year
- Dismal Q2 outlook with earnings far below forecasts
On August 8, 2025, Under Armour, Inc. reported its first-quarter fiscal 2026 results, which fell short of analyst expectations. The athletic apparel company posted adjusted earnings per share of $0.02, slightly below the analyst estimate of $0.03, while revenue declined 4% year-over-year to $1.1 billion, missing the consensus estimate of $1.13 billion.
The disappointing performance was compounded by the company's second-quarter outlook, which projects earnings of $0.01-$0.02 per share, dramatically below analyst expectations of $0.26. Under Armour's North American revenue decreased 5% to $670 million, while international revenue declined 1% to $467 million. Footwear was particularly weak, with revenue dropping 14% to $266 million.
Despite an improvement in gross margin, the company expects further challenges in the second quarter, largely due to supply chain headwinds and anticipated impacts from tariffs. Under Armour is currently implementing a restructuring plan announced in May 2024, aimed at improving financial and operational efficiencies.
