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UABearishEarningsShort Term

High materiality7/10

UNDER ARMOUR REPORTS FIRST QUARTER FISCAL 2027 RESULTS; MAINTAINS FULL-YEAR PROFITABILITY OUTLOOK WHILE UPDATING REVENUE EXPECTATIONS

StockNews.AIAug 7, 6:55 AM EDT1 source

Trading thesisImportance 7/10

Neutral to slightly bearish near-term; margin upside partially offsets revenue decline, with 6–12 month upside if demand stabilizes.

AI summary

What happened and why it matters

Under Armour reported Q1 FY2027 results for the quarter ended June 30, 2026 with revenue of about $1.098B, down 3% YoY and 4% CC. North America fell 9% to $610M while international revenue rose 5% to $490M, led by a 12% CC gain in EMEA and weakness in Asia-Pacific. Gross margin expanded to 54.1% due to IEEPA tariff refunds, though FX and mix headwinds remain. The company now projects FY2027 revenue to decline mid-single digits, supported by margin expansion and disciplined cost management; Adjusted EPS is guided to $0.08–$0.12 (GAAP $0.01–$0.05), with a potential ~$70M tariff-refund benefit; management also highlights ongoing restructuring progress and a planned completion by year-end 2026.

FY2027 revenue guidance revised to mid-single-digit decline; potential negative stock reaction.
Tariff refunds provide a one-time gross-margin uplift (~150 bps) that may not recur.
Direct-to-consumer/eCommerce weakness persists; eCommerce declined ~12% in the quarter.
Regional mix shows NA weakness with improving international contributions (EMEA solid, APAC weak).

Sentiment rationale

The updated FY2027 guidance implies a mid-single-digit revenue decline, which can pressure the multiple; margin uplift from tariff refunds mitigates some downside but is non-recurring and relies on tariff effects persisting. The weak DTC/eCommerce trend and NA softness add downside risk near term.

Key facts

01
Revenue: about $1.098B; down 3% YoY, down 4% in constant currency.
02
NA revenue -9% to $610M; International +5% to $490M; EMEA +12% CC; APAC -7% CC.
03
Gross margin 54.1%, up 590 bps; tariff refunds boost margin; FX headwinds persist.
04
Outlook: FY2027 revenue now seen to decline mid-single-digit; adjusted EPS $0.08–$0.12; GAAP $0.01–$0.05.
05
DTC/eCommerce weakness persists; eCommerce down ~12% in the quarter; premium storytelling emphasis.

Earnings

Earnings category reflects quarterly results and updated full-year guidance; UA’s story hinges on achieving full-price demand and margin expansion as offsets to a softer revenue backdrop.