Shares sank 8% to $4.93 in pre-market trading as Under Armour delivered fiscal second-quarter results that, while narrowly beating estimates, confirmed the sportswear maker is still losing ground. Revenue fell 7% to $1.24 billion , and management offered no signal that the bleeding will stop soon. For a company in the third year of a turnaround under founder-CEO Kevin Plank, the clock is ticking.
• North America and International Are Now Both Declining. North America revenue dropped 7% to $737 million, while international revenue also fell 7% to $509 million. That's a troubling shift: last quarter, international sales were still growing at 5% , serving as a lifeline. EMEA fell 9%, Asia-Pacific declined 9%, and only Latin America managed a slim 3% gain. When both engines stall at once, the revenue floor becomes harder to find.
• Beating Low Expectations Doesn't Fix the Top Line. Adjusted EPS came in at $0.00 versus a consensus estimate of -$0.01, and revenue of $1.24 billion edged past the $1.23 billion estimate. The company has gotten skilled at cutting costs — adjusted operating income was $25 million — but Wall Street sold the stock anyway. Investors are signaling that margin management alone, without revenue recovery, isn't enough.
• The Full-Year Outlook Offers No Inflection Point. Under Armour maintained its fiscal 2027 guidance: adjusted EPS of $0.08–$0.12, mid-single-digit revenue decline, and operating income of $140–$160 million.
The stock has reported sales declines for three straight years , and this guidance extends that streak. Meanwhile, fast-growing rivals On and Hoka keep taking share in footwear, where Under Armour's sales dropped 11% to $234 million this quarter.
• The Restructuring Is Real, But Expensive. The board has approved up to $305 million in total restructuring charges , and another $13 million landed this quarter alone.
Plank's plan involves cutting roughly 25% of product lines and shifting to higher-priced items. The strategy makes sense on paper — sell less stuff at better margins — but analysts warn "this is becoming harder in a market shaped by tariffs, aggressive promotions and increasingly price-sensitive consumers."
At a $2.4 billion market cap and with no positive EPS on a trailing basis, Under Armour is priced like a company the market isn't sure will grow again. The turnaround is a marathon — so far, investors are only seeing the first mile.