It was a mixed bag for Under Armour in the second quarter.
Before the market opened Thursday, the Baltimore-based brand reported earnings per share of 4 cents, 2 cents higher than Wall Street projections, on a 5 percent decline in sales to $1.33 billion, slightly above expectations of $1.31 billion. The net loss was $18.8 million in the period.
But the company said full-year EPS is expected to total between 3 cents and 5 cents, below analyst expectations of 6 cents.
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By region, the company’s North American sales fell 8 percent to $792 million while international revenue increased 2 percent to $551 million. That included a 12 percent sales jump in the EMEA, a 14 percent decline in Asia-Pacific and a 15 percent increase in Latin America.
Wholesale revenue was down 6 percent to $775 million and direct-to-consumer sales dipped 2 percent to $538 million. The latter figure included flat revenues at Under Armour’s owned and operated stores and an 8 percent decline online, a category that accounted for 28 percent of the total DTC business in the quarter.
Apparel revenue was down 1 percent to $936 million, footwear sales declined 16 percent to $264 million and accessories sales were down 3 percent to $113 million.
“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,” said Under Armour president and chief executive officer Kevin Plank. “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.”
Looking ahead to the full year, the company said revenue is expected to decline 4 to 5 percent, which includes a high-single-digit decrease in North America and Asia-Pacific and a high-single-digit increase in EMEA. Operating income is expected to range between $19 million and $34 million with adjusted operating income forecasted to be between $90 million and $105 million and a diluted loss per share of 15 cents to 17 cents.
In May 2024, Under Armour announced a restructuring plan that it estimated would cost up to $160 million, with up to $90 million expected to be cash-related. By the end of the second fiscal quarter of 2026, the plan had resulted in the company recording $103 million in restructuring and impairment charges, as well as $44 million in other related expenses. The company expects that the remaining charges outlined in the updated restructuring plan will be recognized by the end of fiscal 2026.
