Under Armour’s revenue was $1.3bn in Q2, however it previously projected revenue to fall by 6% to 7% in the quarter due to fluctuating trade policies and a volatile macroeconomic climate.
Under Armour’s revenue from North America dropped by 8% to $792m. In contrast, international revenue grew by 2% to $551m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Within individual business segments, wholesale revenue decreased by 6% to $775m, and direct-to-consumer revenue fell 2% to $538m.
Store sales generated by Under Armour’s owned and operated locations remained steady during the quarter. However, e-commerce revenue declined by 8% and made up 28% of direct-to-consumer sales for the three-month period.
Under Armour president and CEO Kevin Plank said: “We delivered results ahead of our prior outlook this quarter and are encouraged to see signs of brand momentum in North America – an important milestone in our turnaround.
“With our strategy, operating model, and go-to-market approach firmly in place, we’re staying disciplined and focused. The response from consumers and partners reflects this execution, driven by stronger product, sharper storytelling, and a renewed belief in the Under Armour brand.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUnder Armour’s Q2 FY26 results
The company’s gross margin fell by 250 basis points to 47.3% over the quarter as the company faced supply chain pressures, higher tariffs, and an unfavourable channel and regional mix.
Selling, general, and administrative (SG&A) expenses rose by 12% to $582m. When excluding approximately $4m in transformation costs related to Under Armour’s Fiscal 2025 Restructuring Plan, adjusted SG&A increased by 9% to $577m.
Operating income for the quarter was reported at $17m. Excluding restructuring and transformation expenses, adjusted operating income reached $53m.
The company posted a net loss of $19m, while adjusted net income was $15m for the period. This translates to diluted loss per share of $0.04 in Q2 FY26, against earnings per share of $0.39 in the same period a year ago.
Under Armour’s restructuring plan for 2025
Under Armour has continued implementing its restructuring plan announced in May 2024, which aims to improve financial and operational efficiency at an estimated total cost of up to $160m.
By the end of Q2 FY26, the company had incurred $103m in restructuring and impairment charges and a further $44m in transformational expenses connected to this plan. Management expects remaining costs under this plan to be recognised by the end of fiscal year 2026.
Under Armour’s outlook for FY26
Looking ahead, Under Armour expects total revenue will decrease between 4% and 5% from the previous year.
The company forecasts high-single-digit percentage declines in North America and Asia-Pacific markets but anticipates a high-single-digit percentage increase in Europe, the Middle East, and Africa (EMEA) revenue.
Gross margin is projected to decline by between 190 and 210 basis points, mainly because of higher US tariffs and continued channel and regional mix pressures.
Under Armour projects SG&A expenses will decline by a mid-teens percentage rate next year. On an adjusted basis, SG&A is expected to decrease at a mid-single-digit rate due mainly to lower marketing costs, restructuring savings, and other cost management efforts. The company forecasts operating income for fiscal year 2026 will be between $19m and $34m. Diluted loss per share is expected between $0.15 and $0.17.
