Under Armour (NYSE:UAA) reported fiscal first-quarter 2026 results that fell short of analyst forecasts, sending shares down more than 18% on Friday as the company issued sharply lower-than-expected guidance for the current quarter.
Adjusted earnings came in at $0.02 per share, missing the $0.03 consensus estimate. Revenue declined 4% year-over-year to $1.1 billion, below expectations of $1.13 billion. The company projected second-quarter earnings of $0.01 to $0.02 per share, well under analysts’ forecast of $0.26.
North American sales fell 5% to $670 million, while international revenue slipped 1% to $467 million. Footwear sales dropped 14% to $266 million, apparel sales declined 1% to $747 million, and accessories rose 8% to $100 million.
Gross margin improved 70 basis points to 48.2%, aided by favorable currency, pricing, and product mix. However, Under Armour expects Q2 gross margin to contract by 340 to 360 basis points due to supply chain challenges and tariff impacts.
The company forecasts Q2 revenue to decline 6% to 7%, with double-digit declines in North America and Asia-Pacific partially offset by high-single-digit growth in EMEA.
