Under Armour, the popular sportswear brand, recently reported a net loss of $43 million for the fourth quarter of fiscal year 2026. This is a significant improvement from the net loss of $67 million recorded in the same quarter of the previous year. The company’s president and CEO, Kevin Plank, attributed this performance to the deliberate steps taken to reset the business and enhance operational discipline.
In terms of revenue, Under Armour saw a 1% decline year-on-year in the fourth quarter, with total revenue reaching $1.2 billion. While North America revenue dropped by 7% to $641 million, international revenue saw a 10% increase to $539 million. The growth in international markets was particularly strong, with Europe, Middle East, and Africa (EMEA) revenue up by 7%, Asia-Pacific revenue increasing by 13%, and Latin America revenue rising by 22%.
The company’s wholesale revenue decreased by 3% to $748 million, while direct-to-consumer (DTC) revenue grew by 5% to $406 million. Owned-and-operated store revenue saw an 8% increase, and eCommerce revenue remained flat, accounting for 35% of total DTC revenue in the quarter. By category, apparel revenue remained flat at $778 million, footwear revenue was unchanged at $282 million, and accessories revenue increased by 2% to $94 million.
Despite the improvements in revenue, Under Armour’s gross margin for the quarter declined by 470 basis points to 42.0%, primarily due to higher tariffs, increased product costs, pricing challenges, and an unfavorable regional mix. Selling, general, and administrative expenses decreased by 15% to $518 million, resulting in an operating loss of $34 million for the quarter. Adjusted operating income for Q4 was $3 million, a significant improvement from the adjusted operating loss of $36 million in the same period last year.
Looking at the full fiscal year 2026, Under Armour reported a net loss of $496 million, compared to a net loss of $201 million in fiscal 2025. Adjusted net income also decreased to $50 million from $135 million in the previous year. Revenue for the fiscal year declined by 4% to $5.0 billion, with adjusted operating income falling to $107 million from $198 million in the prior year.
As the company moves forward into fiscal year 2027, Under Armour anticipates a slight decline in revenue, with North America experiencing a low single-digit decrease, partially offset by low single-digit growth in EMEA and Asia-Pacific. The company has extended its Fiscal 2025 Restructuring Plan, with total program costs expected to reach approximately $305 million by the end of 2026.
In conclusion, Under Armour’s recent financial performance reflects the progress made in restructuring the business and improving operational efficiencies. With a focus on stabilizing revenue and strengthening product offerings, the company is poised to navigate challenges and drive growth in the coming year.
