Under Armour Inc (UA) Q4 2026 Earnings Report

Under Armour reported a disappointing Q4 FY2026 with revenue of $1.171 billion, down 16.4% year over year and 12.2% quarter over quarter, driven by persistent consumer softness and tariff-related headwinds. GAAP net income was a negative $43.4 million, translating to an earnings per share of -$0.10, and operating income declined to -$25.7 million as margin compression persisted (gross margin 42.0% in the quarter). Management framed the results as part of a deliberate transformation to a more focused, premium, and brand-driven company, emphasizing product-led growth, category management, and sharper marketing discipline. A cornerstone of the strategy is SKU rationalization (down 25% over two years) and a shift toward high-value, top-10 volume drivers across apparel, footwear, and accessories, underpinned by stronger storytelling and brand credibility.

Management expects FY2027 to deliver revenue stabilization with a slight decline and meaningful gross-margin expansion (220–270 basis points), supported by tariff-related refunds and pricing actions. Adjusted operating income is guided to $140–$160 million. The company plans targeted marketing investments (~$30 million) in FY2027 to accelerate brand momentum and set up a stronger growth trajectory in FY2028, while maintaining SG&A discipline within historical ranges. North America is projected to stabilize with improving sell-through and cleaner inventory, while EMEA remains solid and APAC focuses on China-driven efficiency and assortment discipline. The near-term outlook still acknowledges external pressures (tariffs, geopolitical risk) and ongoing market volatility, but the trajectory is toward a more predictable, higher-quality growth model.

Key takeaways for investors: (1) a clear move to premiumization and product-led growth, (2) improved capital allocation with cost discipline and SKU rationalization, (3) a transition to a more differentiated marketing approach linking product, storytelling, and retail execution, and (4) an explicit path to FY27 profitability and long-term margin expansion, albeit with execution risk and macro headwinds.