Core Insights - Under Armour Inc. reported second-quarter fiscal 2026 results that exceeded Wall Street expectations for earnings per share but fell short on full-year earnings guidance, leading to a more than 5% decline in share price during intra-day trading [1] Financial Performance - Earnings per share for the quarter were $0.04, surpassing consensus estimates of $0.02 [1] - Revenue for the quarter was $1.33 billion, slightly above the forecast of $1.31 billion, but represented a 5% decline year over year, or a 6% decline on a currency-neutral basis [1] - Gross margin decreased by 250 basis points to 47.3%, impacted by supply chain costs, higher tariffs, and an unfavorable product and regional mix [2] - Adjusted operating income, excluding transformation and restructuring expenses, was reported at $53 million [2] Future Guidance - For fiscal 2026, Under Armour projected earnings per share between $0.03 and $0.05, which is below the consensus estimate of $0.06 [3] - The company expects revenue to decline by 4% to 5%, with high-single-digit sales declines anticipated in North America and Asia-Pacific, partially offset by similar growth in EMEA [3] - Gross margin is expected to contract by 190 to 210 basis points, primarily due to increased U.S. tariffs, although favorable pricing and currency effects may mitigate some of the downside [3]
Under Armour Shares Drop 5% as Weak Outlook Overshadows Q2 Earnings Beat