Under Armour stock faces a lower outlook after Q1 sales fall

Published on 10/01/2026 at 04:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Under Armour stock's fiscal 2027 outlook shifted to a mid-single-digit revenue decline after Q1 revenue fell 3.00 percent to USD 1.10 billion. Gross margin reached 54.10 percent.

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Under Armour stock faces a lower outlook after first-quarter fiscal 2027 revenue fell 3.00 percent year over year to USD 1.10 billion. The company still reported adjusted EPS of USD 0.05 versus a USD 0.02 consensus estimate for the quarter ended June 30, 2026, according to MarketBeat on August 7, 2026.

Revenue outlook moves lower

Under Armour now expects full-year fiscal 2027 revenue to decline at a mid-single-digit rate, replacing an earlier outlook for a slight decline. The change reflects softer consumer demand in North America and Asia Pacific, while management continues to limit discounting to protect full-price selling.

Ragtrader reported on September 10, 2026, that North America revenue fell 9.00 percent to USD 610 million in the quarter, while international revenue rose 5.00 percent to USD 490 million. The split shows why the outlook change matters: the largest market weakened as international growth remained uneven.

Margin improves with caveat

Gross margin rose to 54.10 percent in Q1 fiscal 2027, an increase of 590 basis points from the prior year. Ragtrader linked much of that improvement to refunds tied to tariff costs recorded in fiscal 2026, which makes the margin gain less representative of underlying pricing power.

Under Armour retained fiscal 2027 operating income guidance of USD 96 million to USD 116 million. The company is also guiding to adjusted EPS of USD 0.08 to USD 0.12, a range that places profitability alongside the continuing sales reset.

Market value and range frame reset

Under Armour's Class C stock is listed on the NYSE, and its market capitalization was USD 1.9 billion as of September 30, 2026. The 52-week range was USD 3.95 to USD 7.91 on the same date, giving investors a clear market reference for the scale of the turnaround challenge.

The company operates in athletic apparel, footwear and accessories, with North America still the central regional test for the strategy. The combination of a 3.00 percent revenue decline, a 590-basis-point margin gain and unchanged operating income guidance points to a business improving efficiency faster than it is rebuilding demand.