Under Armour revenue falls to five billion dollars amid strategic reset

US sportswear group Under Armour has announced its financial results for the fourth quarter and full fiscal year 2026, ending March 31, 2026. The Baltimore-based company reported a total annual revenue of 5 billion dollars, representing a 4 percent decline compared to the previous year, or a 5 percent decrease on a constant currency basis.

The fiscal year was defined by significant structural shifts as the group worked to streamline its operating model. President and chief executive officer, Kevin Plank, stated that the performance reflects "intentional steps" to restore brand discipline. Plank noted that while the group has faced macro challenges, the focus is now shifting toward modern marketing excellence to accelerate consumer demand.

International growth offsets North American decline

During the fourth quarter, revenue reached 1.20 billion dollars, a slight decrease of 1 percent from the prior year. Performance varied significantly by region, as North America revenue fell 7 percent to 641 million dollars. In contrast, international revenue rose 10 percent to 539 million dollars, bolstered by a 22 percent increase in Latin America and 13 percent growth in Asia-Pacific.

The group’s direct-to-consumer (DTC) channel showed resilience in the final quarter, growing 5 percent to 406 million dollars. This growth was primarily driven by owned and operated stores, which saw an 8 percent increase in revenue. E-commerce performance remained flat, accounting for 35 percent of the total DTC business for the period.

Segment performance and restructuring impacts

The group’s core product categories saw varied results throughout the year, with apparel remaining the largest contributor despite a 2 percent decline to 3.40 billion dollars. The footwear division experienced a sharper contraction, falling 11 percent to 1.10 billion dollars. Accessories was the only category to report growth, increasing 1 percent to 414 million dollars.

For the full year, Under Armour reported an operating loss of 163 million dollars, while adjusted operating income stood at 107 million dollars. The net loss for the year was 496 million dollars, which included a 247 million dollar valuation allowance on US federal deferred tax assets.

Gross margin for the year decreased 240 basis points to 45.5 percent. This decline was attributed to higher tariffs, increased product costs, and unfavorable regional mix. However, the group expects a significant recovery in the coming year, forecasting a gross margin increase of 220 to 270 basis points for fiscal 2027.

Outlook for fiscal 2027

Looking ahead, Under Armour expects revenue to decline slightly in the next fiscal year. While North America is projected to see a low single-digit decrease, the group anticipates growth in Europe, Middle East and Africa (EMEA) and Asia-Pacific.

Management intends to increase marketing investments to strengthen the brand as the business stabilizes. Adjusted operating income for fiscal 2027 is anticipated to be between 140 million dollars and 160 million dollars. The Fiscal 2025 Restructuring Plan, which has incurred 261 million dollars in costs to date, is expected to be substantially complete by December 31, 2026.