UNDER ARMOUR REPORTS FIRST QUARTER FISCAL 2026 RESULTS; PROVIDES SECOND QUARTER FISCAL 2026 OUTLOOK

Core Insights - Under Armour reported its unaudited financial results for the first quarter of fiscal 2026, ending June 30, 2025, showing a revenue decline of 4.2% year-over-year to $1.134 billion [5][13][15]. Financial Performance - The company experienced a gross margin increase of 70 basis points to 48.2%, attributed to favorable foreign exchange, pricing, and product mix, despite higher supply chain costs [5][13]. - Selling, general, and administrative expenses decreased by 37% to $530 million, with adjusted expenses down 6% to $522 million, excluding transformation expenses [5][13]. - The net loss for the quarter was $3 million, with an adjusted net income of $9 million, leading to a diluted loss per share of $0.01 and adjusted diluted earnings per share of $0.02 [5][13][26][28]. Revenue Breakdown - North American revenue decreased by 5% to $670 million, while international revenue declined by 1% to $467 million [5][14]. - Within international markets, EMEA revenue increased by 10%, while Asia-Pacific and Latin America saw declines of 10% and 15%, respectively [5][14]. - Apparel revenue decreased by 1% to $747 million, footwear revenue fell by 14% to $266 million, and accessories revenue increased by 8% to $100 million [5][16]. Restructuring Plan - Under Armour's restructuring plan, initiated in May 2024, is expected to cost between $140 million and $160 million, with $71 million in restructuring and impairment charges recorded by the end of Q1 fiscal 2026 [4][5]. - The company anticipates recognizing the remaining charges by the end of fiscal 2026 [4]. Outlook - For the second quarter of fiscal 2026, revenue is expected to decline by 6% to 7%, with a projected low-double-digit percent decrease in North America and high-single-digit percent growth in EMEA [6][11]. - Gross margin is anticipated to decline by 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix [6][11]. Cash and Liquidity - Cash and cash equivalents totaled $911 million, including $400 million raised from senior notes during the quarter, which will be used to manage upcoming debt obligations [5][19]. Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, headquartered in Baltimore, Maryland [9].