Under Armour reported second quarter fiscal 2027 results that exceeded revenue expectations, driven by better-than-anticipated performance in North America. While total revenue declined 7% year-over-year to $1.24 billion as part of a planned brand reset, the company met break-even EPS estimates. Management tightened its full-year gross margin expansion outlook, now projecting an increase of 170 to 220 basis points compared to the previous 220 to 270 basis points, citing higher fuel and freight costs.
Key Highlights
- North America revenue declined 7% to $737.2 million, significantly outperforming the analyst estimate of $685 million.
- Gross margin contracted 30 basis points to 47.0%, primarily impacted by unfavorable foreign currency and channel mix.
- Operating income reached $15 million, while adjusted operating income was $25 million excluding $11 million in restructuring charges.
- Inventory levels increased 4% to $1.1 billion at the end of the quarter.
- The Fiscal 2025 Restructuring Plan remains on track for completion by December 31, 2026, with total anticipated program costs of approximately $305 million.