Under Armour Q4 adjusted EPS misses estimates as North America sales fall

Under Armour

12/05/2026 12:07

Overview

US sportswear maker's fiscal Q4 revenue fell 1% as North America sales declined

Adjusted EPS for fiscal Q4 missed analyst expectations

Company cites restructuring, higher tariffs, and cost pressures for Q4 results

Outlook

Under Armour expects fiscal 2027 revenue to decline slightly year over year

Company sees fiscal 2027 gross margin increasing 220 to 270 basis points versus prior year

Under Armour forecasts fiscal 2027 adjusted diluted EPS of $0.08 to $0.12

Result Drivers

NORTH AMERICA WEAKNESS - Q4 revenue decline was driven by a 7% drop in North America sales, while international revenue grew

GROSS MARGIN PRESSURE - Gross margin declined 470 basis points to 42.0%, primarily due to higher tariffs, higher product costs, pricing headwinds, and unfavorable regional mix

LOWER SG&A EXPENSES - SG&A expenses decreased 15% due to lower marketing spend from timing shifts, reduced incentive compensation, and expense management

Company press release: ID:nPnbVMQtva

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
Miss
-$0.03
-$0.02 (19 Analysts)
Q4 EPS
-$0.10
Q4 Adjusted Net Income
-$11.2 mln
Q4 Net Income
-$43.4 mln
Q4 Gross Margin
42.00%
Q4 EBIT
-$33.7 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 18 "hold" and 3 "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 $8.00, about 32% above its May 11 closing price of $6.06

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 33 three months ago

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.)