Under Armour (UA) Q4 2026 earnings summary

Executive summary

• Leadership transition with new CFO Reza Taleghani, emphasizing capital discipline and strategic clarity.

• Ongoing transformation focused on operational rigor, brand elevation, and profitability.

• Fiscal 2026 revenue declined 4% year-over-year to $5.0 billion, reflecting ongoing business reset and operational discipline.

• Net loss for the year was $496 million, including a $247 million deferred tax asset valuation allowance; adjusted net income was $50 million.

• Deliberate reset over two years, reducing SKUs by 25% and prioritizing premium, innovative products.

Financial highlights

• Fiscal 2026 revenue declined 4% to $5 billion; Q4 revenue down 1% to $1.2 billion.

• Adjusted gross margin for FY26 declined 220 bps to 45.7%; Q4 adjusted gross margin down 360 bps to 43.1%.

• Adjusted operating income for FY26 was $107 million; Q4 adjusted operating income was $3 million.

• Adjusted diluted EPS for FY26 was $0.12; Q4 adjusted diluted loss per share was $0.03.

• Inventory ended at $915 million, down 3% YoY; cash at $309 million.

Outlook and guidance

• Fiscal 2027 revenue expected to decline slightly, with a 1-point impact from Curry Brand exit.

• North America to decline low single digits; EMEA and APAC to grow low single digits.

• Gross margin expected to expand 220-270 bps, including ~150 bps from a tariff refund.

• Adjusted operating income projected at $140-$160 million; adjusted diluted EPS $0.08-$0.12.

• Q1 FY27 revenue to decline 2-3%, with Q1 being the weakest quarter.