Under Armour, Inc.

First-quarter revenue declined 3% to $1.1 billion. North America revenue fell 9%; EMEA rose 12% (10% constant currency); APAC fell 7% (10% constant currency); and Latin America rose 8% (1% constant currency). Gross margin increased 590 basis points year over year to 54.1%. SG&A increased 2% to $543 million; adjusted SG&A was 4% higher year over year excluding $2 million of transformation expenses. Operating income was $47 million, and adjusted operating income was $52 million versus prior 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; cash was $396 million, and $200 million was outstanding on the revolving credit facility. For fiscal 2027, revenue is now expected to decline at a mid-single-digit rate, adjusted operating income is maintained at $140 million to $160 million, gross margin is still expected to expand about 220 to 270 basis points, and adjusted SG&A is expected to decline at a low single-digit rate. For Q2, the company expects revenue to decline at a high single-digit rate, gross margin to be in line with last year, adjusted SG&A to decline at a low single-digit rate, adjusted operating income of $10 million to $20 million, and adjusted EPS of $(0.01) to $(0.03).

Kevin Plank framed the quarter as a deliberate reset toward a cleaner, higher-quality business rather than a chase for short-term revenue. He emphasized simplifying the lineup, reducing SKU count by another 25% over 18 months, and building fewer but bigger brand stories anchored in athlete credibility, innovation, and better retail execution. His tone was cautious but confident: he repeatedly said the company will not chase unhealthy volume or rely on promotions, and that the goal is to convert internal progress into stronger consumer demand over time.

Reza Taleghani said the quarter showed the benefit of operating control: revenue was pressured, but adjusted operating income still beat expectations. He cited gross margin of 54.1%, up 590 basis points, and explained the improvement mainly came from 640 basis points of IEEPA tariff refunds and 50 basis points of supply-chain benefits, partly offset by currency, mix, and pricing pressure. He also noted inventory of $1.1 billion, down 3%, cash of $396 million, and $200 million drawn on the revolver, while saying the company settled the remaining 2026 senior notes, amended the revolver on a leverage-neutral basis, and still expects about $305 million of restructuring costs in total, with actions substantially complete by December 31. For the year, he maintained adjusted operating income and adjusted EPS outlooks despite a softer revenue view, and said marketing will be lower as a percentage of revenue while SG&A is expected to decline at a low single-digit rate.

Analysts pressed management on the Bouncy Tee’s success, the SKU reduction plan, inventory liquidation, and whether weaker demand was coming from new products or legacy lines. Plank said Bouncy Tee was designed as a full-price, brand-defining product that combines innovation, culture, and retail execution, and that it is meant to be a template for future launches. On inventory, Taleghani said the company entered the year clean, inventory is mostly current season, and it should generally trend with revenue rather than drop sharply, because new full-price product and normal selling cadence will offset the less productive SKUs over time. On demand, management said softness is broad but especially tied to North America and parts of APAC, with Q2 still reflecting current macro weakness, while the back half assumes improvement from new launches, partner initiatives, and continued marketplace discipline rather than a macro recovery.