Under Armour Lowers Revenue Outlook on Soft Demand -- Update

By Connor Hart and Freddy Sebastian

Under Armour cut its revenue outlook for the year, hurt by a persistently challenging consumer environment that has dampened demand for its products.

The sportswear brand said Friday that traffic trends weakened as the latest quarter progressed, especially in North America and the Asia-Pacific region, prompting the company to step up its promotional efforts.

"Given what we're seeing today, we've taken a more cautious view of revenue for the balance of the year," Chief Executive Kevin Plank said on a call with analysts.

Under Armour now expects revenue to decline at a mid-single-digit percentage rate, compared with its prior outlook of a slight decline. The new outlook came as fiscal first-quarter revenue fell 3% to $1.1 billion, in line with Wall Street estimates, according to FactSet.

Shares fell as much as 7% in early trading but have since pared back some of their losses, recently trading 2.6% lower at $6.22. Despite the decline, the stock is up about 18% year to date.

Despite its disappointing top-line result in the latest quarter, Under Armour's business is fundamentally stronger, Plank said, citing efforts in recent years to simplify the organization, reduce its number of products, and strengthen the connection between product marketing and sales.

"That brings us to the central question: How do we turn a healthier business into stronger consumer demand?" Plank said.

Moving forward, Under Armour will aim to cut back its reliance on promotions and focus its investments on its top-performing products, such as its HeatGear performance apparel line and its Velociti running collection. Plank wants consumers to choose to buy Under Armour products at premium prices. The company "must earn that through more compelling reasons to buy," he said.

Under Armour will at the same time look to increase its cultural relevance with more athlete collaborations, improve its commercialization so products are easier to buy, and better manage its inventory, Plank said.

For its three months ended June 30, Under Armour swung to a profit of $545,000, or breakeven on a per-share basis, from a loss of $2.61 million, or one cent share, a year earlier. On an adjusted basis, quarterly earnings of five cents a share topped analyst expectations for two cents a share.

Revenue fell, dragged down by lower sales in North America.

For the year, the company maintained its guidance for adjusted earnings of eight cents to 12 cents a share. Analysts are looking for adjusted earnings of 11 cents a share.

Write to Connor Hart at connor.hart@wsj.com

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August 07, 2026 11:46 ET (15:46 GMT)