The Baltimore-based sports brand also provided a mediocre outlook for fiscal 2027.The Baltimore-based sports brand also provided a mediocre outlook for fiscal 2027.
Under Armour shares were down around 10 percent in pre-market trading on Tuesday after the company reported fourth-quarter results below analyst expectations and provided a lackluster outlook for the next fiscal year.
The Baltimore-based sports brand reported an operating loss of $34 million and adjusted operating income of $3 million for the period ended March 31. The net loss was $43 million and the adjusted net loss was $11 million, which excludes transformation and restructuring charges. The diluted loss per share was 10 cents and the adjusted diluted loss per share was 3 cents, below analyst expectations of 1 cent.
Sales, which were in line with expectations, decreased 1 percent to $1.2 billion.
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North America sales continued to decline, falling 7 percent to $641 million in the period, while international revenue increased 10 percent to $539 million. By region, EMEA revenue increased 7 percent, Asia-Pacific increased 13 percent, and Latin America increased 22 percent.
Wholesale revenue decreased 3 percent to $748 million and direct-to-consumer (DTC) revenue increased 5 percent to $406 million. The company’s owned-and-operated store revenue grew 8 percent, while e-commerce sales, which represent 35 percent of total DTC volume, were flat.
By category, apparel revenue was also flat at $778 million, ditto for footwear at $282 million, while accessories grew 2 percent to $94 million.
“Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand,” said Kevin Plank, president and chief executive officer. “Over the past two years we’ve addressed structural and macro challenges head-on while elevating our product strategy. We’re streamlining our operating model and increasing accountability in execution, driving a more controlled and predictable business.
“As our topline stabilizes in fiscal 2027, we are applying the same rigor that is strengthening our product engine to our storytelling capabilities. Building world-class, modern marketing excellence is now our highest priority that we believe will accelerate consumer demand and help reshape Under Armour’s profit profile.”
For the year, the operating loss was $163 million and adjusted operating income was $107 million. The net loss was $496 million. Sales for the year fell 4 percent to $5 billion with North American revenue decreasing 8 percent to $2.9 billion and international revenue growing by 4 percent to $2.1 billion.
Wholesale revenue decreased 5 percent to $2.8 billion, and DTC revenue declined 2 percent to $2.1 billion. Revenue from owned and operated stores increased 1 percent, while e-commerce revenue decreased 7 percent.
In the year, apparel revenue fell 2 percent to $3.4 billion; footwear revenue declined 11 percent to $1.1 billion, and accessories revenue increased 1 percent to $414 million.
Looking ahead to fiscal 2027, the company said revenue is expected to “decline slightly year over year, with a low single-digit decrease in North America partially offset by low single-digit growth in EMEA and Asia-Pacific.”
Operating income is expected to be in the range of $96 million to $116 million and adjusted operating income is seen coming in at $140 million to $160 million. Diluted loss per share is expected to range from breakeven to $0.04 and adjusted diluted earnings per share are expected to range from 8 to 12 cents.
