Under Armour, Inc.

First-quarter revenue declined 3% to $1.1 billion. Gross margin increased 590 basis points year over year to 54.1%, driven largely by 640 basis points of IEEPA tariff refund benefit and 50 basis points of other supply-chain benefits, partly offset by foreign exchange, mix, and discounting. SG&A increased 2% to $543 million; adjusted SG&A was up 4% excluding $2 million of transformation expense. Operating income was $47 million, and adjusted operating income was $52 million versus an outlook of $30 million to $40 million. Diluted EPS was breakeven, while adjusted diluted EPS was $0.05. Inventory ended at $1.1 billion, down 3% year over year, and cash was $396 million with $200 million outstanding on the revolver. For fiscal 2027, revenue is now expected to decline at a mid-single-digit rate, while adjusted operating income remains $140 million to $160 million. Gross margin is still expected to expand about 220 to 270 basis points versus last year, and adjusted SG&A is now expected to decline at a low single-digit rate. For Q2, Under Armour expects revenue to decline at a high single-digit rate, adjusted operating income of $10 million to $20 million, and adjusted diluted EPS of a $0.01 to $0.03 loss.

Kevin Plank framed the quarter as a reset toward a cleaner, more premium business rather than a chase for short-term volume. He emphasized simpler product assortment, tighter marketplace discipline, and a stronger emphasis on innovation, athlete credibility, and storytelling, with Bouncy Tee presented as a model for how future launches should be brought to market. His tone was candid and self-critical about demand softness, but confident that the company is becoming more disciplined and flexible.

Reza Taleghani said the quarter benefited from operating control: gross margin reached 54.1%, adjusted operating income came in at $52 million, and adjusted EPS was $0.05, all ahead of expectations. He highlighted tighter SG&A management, including restructuring savings, lower discretionary spend, and a marketing approach that still stays within the prior 10% to 11% range but is lower as a percent of revenue because revenue is coming down. On the balance sheet, inventory was $1.1 billion, cash was $396 million, and the company had $200 million outstanding on its revolver after settling the senior notes due 2026; he also said the revolver amendment was leverage neutral and not tied to near-term funding needs.

Analysts pressed on Bouncy Tee, the SKU reduction, inventory, and whether Under Armour was cutting too much volume. Management said Bouncy Tee worked because it combined innovation, style, and clear storytelling at full price, and called it a template for future launches. On SKUs and inventory, the company said it is cutting the long tail gradually over the natural sales cycle, expecting inventory to generally track revenue rather than fall dramatically faster. Questions also focused on the weaker North America and China trends; management said traffic softened more than expected, DTC promotions were pulled back to avoid buying short-term traffic, and the back half should improve from new product launches and key retail initiatives rather than a macro rebound assumption.