Under Armour shares were down around 10 percent in pre-market trading on Tuesday after the company reported fourth-quarter results below analyst expectations and provided a lackluster outlook for the next fiscal year.
The Baltimore-based sports brand reported an operating loss of $34 million and adjusted operating income of $3 million for the period ended March 31. The net loss was $43 million and the adjusted net loss was $11 million, which excludes transformation and restructuring charges. The diluted loss per share was 10 cents and the adjusted diluted loss per share was 3 cents, below analyst expectations of 1 cent.
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Sales, which were in line with expectations, decreased 1 percent to $1.2 billion.
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North America sales continued to decline, falling 7 percent to $641 million in the period, while international revenue increased 10 percent to $539 million. By region, EMEA revenue increased 7 percent, Asia-Pacific increased 13 percent and Latin America increased 22 percent.
Wholesale revenue decreased 3 percent to $748 million and direct-to-consumer revenue increased 5 percent to $406 million. The company’s owned-and-operated store revenue grew 8 percent, while e-commerce sales, which represent 35 percent of total DTC volume, were flat.
By category, apparel revenue was also flat at $778 million, ditto for footwear at $282 million, while accessories grew 2 percent to $94 million.
“Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand,” said Kevin Plank, president and chief executive officer. “Over the past two years we’ve addressed structural and macro challenges head-on while elevating our product strategy. We’re streamlining our operating model and increasing accountability in execution, driving a more controlled and predictable business.
“As our top line stabilizes in fiscal 2027, we are applying the same rigor that is strengthening our product engine to our storytelling capabilities. Building world-class, modern marketing excellence is now our highest priority that we believe will accelerate consumer demand and help reshape Under Armour’s profit profile.”
For the year, the operating loss was $163 million and adjusted operating income was $107 million. The net loss was $496 million. Sales for the year fell 4 percent to $5 billion with North American revenue decreasing 8 percent to $2.9 billion and international revenue growing by 4 percent to $2.1 billion.
Wholesale revenue decreased 5 percent to $2.8 billion, and DTC revenue declined 2 percent to $2.1 billion. Revenue from owned and operated stores increased 1 percent, while e-commerce revenue decreased 7 percent.
In the year, apparel revenue fell 2 percent to $3.4 billion; footwear revenue declined 11 percent to $1.1 billion, and accessories revenue increased 1 percent to $414 million.
Looking ahead to fiscal 2027, the company said revenue is expected to “decline slightly year-over-year, with a low single-digit decrease in North America partially offset by low-single-digit growth in EMEA and Asia-Pacific.”
Operating income is expected to be in the range of $96 million to $116 million and adjusted operating income is seen coming in at $140 million to $160 million. Diluted loss per share is expected to range from breakeven to $0.04 and adjusted diluted earnings per share are expected to range from 8 to 12 cents.