Under Armour posts surprise Q3 adjusted profit; sees smaller FY sales drop

Under Armour

06/02/2026 12:03

Overview

Athletic apparel maker's fiscal Q3 revenue fell 5%, less than analyst expectations

Adjusted EPS for fiscal Q3 beat analyst expectations of a loss

Company expects greater stability ahead as it builds global brand momentum

Outlook

Under Armour expects fiscal 2026 revenue to decline approximately 4% vs prior view of a 4-5% drop

Company anticipates an 8% revenue decline in North America for fiscal 2026

Under Armour projects fiscal 2026 adjusted EPS of $0.10 to $0.11 vs prior view of $0.03 to $0.05

Result Drivers

NORTH AMERICA CHALLENGES - Revenue in North America fell 10% as the company navigated a challenging business reset phase

GROSS MARGIN PRESSURE - Gross margin declined 310 basis points due to higher tariffs and pricing headwinds, partially offset by foreign exchange gains

INTERNATIONAL PERFORMANCE - EMEA and Latin America saw revenue growth, while Asia-Pacific experienced a decline

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.33 bln
$1.31 bln (19 Analysts)
Q3 Adjusted EPS
Beat
$0.09
-$0.02 (18 Analysts)
Q3 EPS
-$1.01
Q3 Adjusted Net Income
$37 mln
Q3 Net Income
-$431 mln
Q3 Gross Margin
44.40%
Q3 EBIT
-$150 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 20 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy."

Wall Street's median 12-month price target for Under Armour Inc is $5.35, about 14.8% below its February 5 closing price of $6.28

The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nPn3dP2wca

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)