Under Armour Inc. (NYSE: UAA) reported second-quarter fiscal 2026 results that came in slightly above Wall Street expectations, but its full-year earnings guidance fell short of analyst forecasts, sending shares down more than 5% in intra-day trading on Thursday.
The athletic apparel maker posted earnings per share of $0.04, beating consensus estimates of $0.02. Revenue reached $1.33 billion, ahead of the $1.31 billion forecast but down 5% year over year, or 6% on a currency-neutral basis.
Gross margin slipped 250 basis points to 47.3%, weighed by supply chain costs, higher tariffs, and an unfavorable product and regional mix. The company noted that foreign exchange gains and improved pricing helped offset some of these pressures.
Adjusted operating income, excluding transformation and restructuring expenses, came in at $53 million.
For fiscal 2026, Under Armour projected earnings per share of $0.03 to $0.05, below the $0.06 consensus, and expects revenue to decline 4% to 5%. The company forecast high-single-digit sales declines in North America and Asia-Pacific, partially offset by similar growth in EMEA. Gross margin is anticipated to contract by 190 to 210 basis points, mainly due to increased U.S. tariffs, though favorable pricing and currency effects are expected to limit the downside.
