Under Armour [NYSE: UAA] reported its fiscal fourth-quarter 2026 results before markets opened on Tuesday, delivering a quarterly loss and full-year revenue decline that sent the stock tumbling approximately 13% in premarket trading to around $5.21 per share.
The company posted an adjusted loss of $0.03 per share for the quarter ended March 31, missing the consensus estimate of a $0.02 loss, while revenue of $1.17 billion came in marginally below expectations and represented a 0.8% decline from the same period a year ago.
For the full fiscal year 2026, Under Armour generated $5.0 billion in revenue, down 4% year-on-year with a 5% decline in constant currency terms. North America, the company’s most important market and historically its strongest, contracted 8% to $2.9 billion, while international revenue grew 4% to $2.1 billion in reported terms though was flat in constant currency. The divergence between a struggling domestic business and growing international operations has been a consistent feature of the company’s financial narrative throughout the Kevin Plank-led turnaround, and it remained intact in fiscal 2026.
Gross margin for the full year declined 240 basis points to 45.5%, primarily driven by higher US tariffs with smaller headwinds from elevated product costs, pricing pressure, and unfavourable channel and regional mix. The tariff impact is material and worsening, not merely a headline line item, and it represents an external drag on the turnaround that management cannot resolve through operational decisions alone. The company recorded a full-year net loss of $496 million, incorporating a $247 million valuation allowance related to US federal deferred tax assets, a non-cash charge that reflects uncertainty about future profitability in the domestic market.
The most damaging element of the release for investors was the fiscal 2027 guidance, which projected adjusted earnings per share of between $0.08 and $0.12. The midpoint of $0.10 sits roughly 57% below the Wall Street consensus of $0.23, an enormous miss on forward expectations that immediately removed any premium the stock might have carried into the report. The company also expects revenue to decline slightly in fiscal 2027, citing continued consumer uncertainty and what management described as “deliberate business reshaping choices” that will suppress revenue in the near term.
On the positive side, fourth-quarter direct-to-consumer revenue grew 5%, driven by an 8% increase in owned and operated stores and flat eCommerce results. International markets across EMEA, Asia-Pacific, and Latin America continued to grow at meaningful rates, with Latin America up 22% and Asia-Pacific up 13% in the final quarter. Those numbers suggest the brand retains genuine global appeal in markets where the US restructuring narrative has less of a dampening effect on consumer sentiment.
CEO Kevin Plank has framed the ongoing restructuring as a necessary pain before the brand can be repositioned at premium price points with tighter distribution and fewer promotional activities. That thesis remains intact operationally, but the guidance shortfall demonstrated that the timeline for recovery is longer than investors had hoped. At $5.21 in premarket trading, the stock was approaching levels that would represent a complete erasure of the gains made following the strong Q3 2026 beat in February, when shares surged almost 20% on a significant earnings surprise.
