Shares of Under Armour slid to $5.47, extending a punishing 20% decline over five trading days, after the athletic-wear maker slashed its full-year revenue forecast for fiscal 2027 and posted a quarterly sales miss that underscored deepening demand problems in its home market.
North America, the Company's Bread and Butter, Is Contracting Fast
North America revenue, Under Armour's largest segment, fell 9% to $609.8 million in the quarter ended June 30.
Direct-to-consumer revenue also fell 6%, including a 12% decline in e-commerce. Those aren't numbers that scream "turnaround." Management now expects a mid-single-digit decline in North America for the full year, downgraded from a low-single-digit decline, while both Asia-Pacific and EMEA are expected to post low-single-digit drops after previously guiding for growth in each region. For shareholders, every international growth engine the company pointed to three months ago has stalled.
The Profit Story Looks Better — But It Rests on a One-Time Windfall
Gross margin jumped 590 basis points to 54.1% , and adjusted earnings hit $0.05 per share, beating the $0.02 estimate by three cents. But strip out the one-time benefit: the adjusted operating income target of $140–$160 million assumes roughly $70 million from refunds of emergency tariff costs booked in fiscal 2026. Remove that refund and the underlying profit picture is far thinner.
Management Is Betting That Fewer Products at Higher Prices Will Fix Demand
Under Armour announced a further 25% reduction in product offerings, on top of a 25% cull already completed , a gamble that a leaner lineup sold at full retail price can offset shrinking volume. But executives cited heavy discounting in North America and throughout Asia as specific challenges, with full-year revenues now expected to decline in the high single digits.
The Restructuring Tab Keeps Growing
Total restructuring costs are now estimated at roughly $305 million, with completion targeted by December 2026.
Full-year fiscal 2026 revenue already declined 4% to $5.0 billion , meaning the brand has been shrinking for years while spending heavily to reorganize. At $5.47, Under Armour trades at a level that prices in considerable pain — the question is whether cost discipline alone can stabilize a brand whose customers are walking away.