Core Insights - Under Armour, Inc. (UAA) reported second-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics decreased year over year [1][3][10] - Management noted positive brand momentum in North America, indicating progress in the company's turnaround strategy [1] Financial Performance - Adjusted earnings were four cents per share, surpassing the consensus estimate of three cents, but down from 30 cents per share in the prior year [3] - Net revenues reached $1,333.4 million, exceeding the consensus estimate of $1,308 million, but down 5% year over year, with a 6% decline on a currency-neutral basis [3] - Wholesale revenues fell 6.2% to $775.1 million, while direct-to-consumer revenues dipped 2.2% to $538.1 million [4] Revenue Breakdown - Apparel revenues decreased 1.1% to $936.5 million, exceeding the consensus estimate of $907 million [5] - Footwear revenues dropped 15.7% to $263.6 million, missing the consensus estimate of $267 million [5] - International revenues rose 2% to $551 million, with EMEA revenues increasing 12.2% to $317.7 million [6][7] Margin Analysis - Gross profit was $630.6 million, down 9.4% year over year, with gross margin contracting 250 basis points to 47.3% [8] - Adjusted selling, general and administrative expenses grew 9% to $577.2 million, excluding transformation costs [9] Future Outlook - For fiscal 2026, revenues are projected to decline 4-5%, with significant decreases expected in North America and Asia-Pacific [15] - Gross margin is anticipated to contract by 190-210 basis points due to elevated tariffs and unfavorable regional mix [15] - Operating income is forecasted between $19-$34 million, with adjusted operating income estimated at $90-$105 million [17]
Under Armour's Q2 Earnings Beat Mark, E-Commerce Revenues Dip 8% Y/Y