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UA

Under Armour, Inc. (UAA)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 revenue declined 4% YoY to $1.13B, slightly above consensus, while adjusted EPS of $0.02 missed the Street’s ~$0.026; GAAP diluted EPS was -$0.01 . Consensus: Revenue ~$1.132B*, EPS ~$0.026* (actual: $1.134B, $0.02) (Values retrieved from S&P Global).
  • Gross margin expanded 70 bps YoY to 48.2% on FX, pricing, and mix; however, footwear (-14% YoY) and eCommerce (-12% YoY; 31% of DTC) were headwinds as the company reduced promotions to protect brand equity .
  • Management guided Q2 FY2026 to a 6–7% revenue decline and a 340–360 bps gross margin contraction driven mainly by tariff-related supply chain headwinds and unfavorable channel mix; adjusted EPS is guided to $0.01–$0.02 .
  • EMEA remained a relative bright spot (revenue +9.6% YoY), while North America (-5.5%) and Asia-Pacific (-10.1%) lagged; wholesale (-4.6%) and DTC (-3.5%) both declined .

What Went Well and What Went Wrong

  • What Went Well

    • Pricing power and mix protected margins: gross margin rose to 48.2% (+70 bps YoY) on FX, pricing, and mix improvements .
    • EMEA outperformed with +9.6% YoY revenue; segment operating income in EMEA rose to $39.6M (~15.9% of segment sales) .
    • Management reiterated focus on brand elevation and premium pricing: “sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline” .

  • What Went Wrong

    • Footwear revenue fell 14% YoY to $266M; Asia-Pacific revenue dropped 10.1% YoY amid competitive, promotional dynamics .
    • eCommerce revenue down 12% YoY (31% of DTC) as UA purposely pulled back promotions; this weighed on top-line despite improved full-price mix .
    • Q2 outlook signaled significant GM pressure (−340 to −360 bps) from tariffs and channel mix; SG&A to rise low double digits (high-single-digit adjusted), implying near-term OI and EPS pressure .

Financial Results

Headline metrics (USD millions except per-share and %)

MetricQ3 FY2025Q4 FY2025Q1 FY2026
Revenue$1,401.0 $1,180.6 $1,134.1
Gross Margin %47.5% 46.7% 48.2%
SG&A$637.7 $607.1 $530.3
Operating Income (Loss)$13.5 $(72.1) $3.3
Diluted EPS (GAAP)$0.00 $(0.16) $(0.01)
Adj. Diluted EPS$0.08 $(0.08) $0.02

Consensus vs actual (Q1 FY2026)

MetricConsensusActualBeat/Miss
Revenue ($MM)$1,132.0*$1,134.1 Slight beat
Primary EPS ($)$0.026*$0.02 Miss
EBITDA ($MM)$55.3*$53.4*Miss

Values retrieved from S&P Global.*

Segment revenue (USD millions)

SegmentQ1 FY2025Q1 FY2026YoY
North America$709.3 $670.3 -5.5%
EMEA$226.9 $248.6 +9.6%
Asia-Pacific$181.8 $163.4 -10.1%
Latin America$64.4 $54.6 -15.3%
Corporate Other$1.3 $(2.8) NM
Total$1,183.7 $1,134.1 -4.2%

Channel revenue (USD millions)

ChannelQ1 FY2025Q1 FY2026YoY
Wholesale$680.5 $649.1 -4.6%
Direct-to-Consumer$480.2 $463.5 -3.5%
License$21.7 $24.4 +12.4%
Corporate Other$1.3 $(2.8) NM
Total$1,183.7 $1,134.1 -4.2%

Product category revenue (USD millions)

CategoryQ1 FY2025Q1 FY2026YoY
Apparel$757.8 $746.6 -1.5%
Footwear$310.4 $265.9 -14.3%
Accessories$92.5 $100.1 +8.1%
Licensing$21.7 $24.4 +12.4%
Total Net Revenues$1,183.7 $1,134.1 -4.2%

KPIs and balance sheet

KPIQ1 FY2026
eCommerce as % of DTC31%
Inventory$1,141.8MM
Cash & Cash Equivalents$910.985MM
Current Maturities of LT Debt$599.757MM
LT Debt (ex current)$389.457MM
Revolving Credit Facility Draw$0
Total Company Doors442

Non-GAAP reconciliations (select)

MetricQ1 FY2026
Adjusted SG&A$522.1MM
Adjusted Operating Income$24.4MM
Adjusted Net Income$8.6MM
Adjusted Diluted EPS$0.02

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 FY2026—Down 6% to 7% YoY New
Gross MarginQ2 FY2026—Down 340–360 bps YoY New
SG&A Growth (GAAP)Q2 FY2026—Low double-digit % New
SG&A Growth (Adjusted)Q2 FY2026—High single-digit % New
Operating Income (GAAP)Q2 FY2026—$(10)MM to $0MM New
Operating Income (Adjusted)Q2 FY2026—$30MM to $40MM New
Diluted EPS (GAAP)Q2 FY2026—$(0.08) to $(0.07) New
Adjusted Diluted EPSQ2 FY2026—$0.01 to $0.02 New

Earnings Call Themes & Trends

Note: A Q1 FY2026 earnings call transcript was not available in our corpus; current period commentary reflects the press release and Q2 outlook.

TopicQ3 FY2025 (Q-2)Q4 FY2025 (Q-1)Q1 FY2026 (Current)Trend
Supply chain & tariffsGM +240 bps on lower freight/product costs, less promo; limited tariff impact contemplated Tariff uncertainty cited; mitigation via sourcing diversification; “not expected to significantly impact Q1” Q2 GM guided down 340–360 bps due mainly to tariff-related supply chain headwinds and channel mix Deteriorating near term
Product performanceApparel resilient; footwear down; premium fleece/innovation callouts (Fox 1, SlipSpeed Echo) Footwear expected more pressure than apparel in Q1; footwear margin below apparel Q1 footwear -14%, accessories +8% Mixed; footwear lagging
Regional trendsEMEA +5%; APAC -5%; NA -8% EMEA strength; APAC reset underway EMEA +9.6%; NA -5.5%; APAC -10.1% EMEA positive; APAC/NA softer
DTC & eCommerceDeliberate promo reductions; AUR up; loyalty momentum Continued DTC promo discipline; back-half normalization expected eComm -12% (31% of DTC) as promos pulled back Health > volume near term
Marketing/brandShift to storytelling, youth focus, major activation planned Reallocation; agile, culturally relevant content (Notre Dame, Curry) Press release emphasizes brand sharpening and premiumization Execution phase
Restructuring/OpExPlan of $140–$160MM; SKU reductions; cost savings Run-rate savings ~$75MM by end FY26; continued discipline Adjusted SG&A -6% YoY; additional transformation costs Savings funding brand

Management Commentary

  • Strategic posture: “We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation – sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline.” – Kevin Plank, President & CEO .
  • Premium focus and pricing: “Moving ahead, we're focused on… increasing our average selling prices through innovative offerings… creating a more compelling full price-to-value proposition.” – Kevin Plank .
  • Balance sheet/liquidity: Cash & equivalents $911MM; issued $400MM senior notes to address $600MM notes due June 2026; no revolver borrowings .

Q&A Highlights

Note: A Q1 FY2026 earnings call transcript was not available in our corpus. The following reflect recurring themes from the prior quarter’s call that framed Q1 and were largely borne out by results:

  • Tariffs and margin trajectory: Management anticipated limited Q1 tariff impact but flagged significant uncertainty for later periods; Q1 GM rose 70 bps, while Q2 GM is guided sharply lower on tariff headwinds .
  • Footwear vs apparel: Footwear expected to remain more pressured than apparel in the near term; Q1 footwear -14% YoY confirmed this .
  • DTC promotional reset: Continued pullback in North America eCommerce promotions to elevate brand/price realization; Q1 eComm -12% YoY and 31% of DTC reflected this choice .
  • EMEA momentum, APAC reset: EMEA expected to lead; APAC undergoing reset; Q1 delivered EMEA +9.6% and APAC -10.1% .

Estimates Context

  • Q1 FY2026 vs S&P Global consensus: Revenue ~$1.132B* vs actual $1.134B (beat); Primary EPS ~$0.026* vs actual adjusted $0.02 (miss); EBITDA ~$55.3MM* vs actual ~$53.4MM* (miss). Primary EPS had 22 estimates; Revenue had 20 estimates* (Values retrieved from S&P Global).
  • Implications for estimates: Q2 guidance calls for revenue down 6–7% and GM down 340–360 bps, with GAAP OI near breakeven and adjusted OI $30–$40MM; Street models may need to trim Q2 margins and EPS and reassess FY26 gross margin expansion trajectories in light of tariff impacts and mix headwinds .

Key Takeaways for Investors

  • Gross margin resilience continued in Q1 (+70 bps to 48.2%) despite top-line pressure, but Q2 margin headwinds from tariffs and mix are material; near-term EPS risk skews to the downside absent offsetting cost or pricing actions .
  • Revenue quality actions (promo pullback) remain a headwind to eCommerce and DTC growth, but support brand/pricing power and long-term margin structure .
  • Category and region divergence persists: footwear lagged while accessories grew; EMEA strength offsets NA/APAC softness—portfolio mix is key to near-term stability .
  • Liquidity looks solid (cash ~$911MM, no revolver draw); refinancing of 2026 notes is in progress—credit risk manageable as UA navigates transformation .
  • Watch catalysts: execution of premium product drops (e.g., SlipSpeed platform), tariff evolution, APAC reset progress, and the cadence of marketing activation effectiveness (brand heat to sell-through) .
  • For positioning: cautious into Q2 given guided GM compression; EMEA exposure and apparel-led mix are relative supports, while footwear/APAC remain focal points for turnaround risk/reward .

Appendix: Additional Detail and Cross-Checks

  • Non-GAAP adjustments in Q1 FY2026: restructuring charges ($12.8MM) and transformation expenses ($8.3MM) excluded to derive adjusted OI and EPS; legal reserve lapped prior year period .
  • Q1 outcome vs prior guidance (from Q4 FY2025 8-K): management guided Q1 revenue down 4–5% and GM up 40–60 bps; actuals landed -4.2% and +70 bps—slightly better than planned .

Citations:

  • Q1 FY2026 8-K press release and financials:
  • Q4 FY2025 8-K press release and outlook:
  • Q3 FY2025 8-K and transcript: