Under Armour has released its unaudited financial results for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a 5% decrease in total revenue, amounting to $1.33 billion, as it continues to navigate a complex multi-year restructuring strategy.
Regional Performance and Category Slump
The decline was most pronounced in the North American market, where revenue fell by 10%. In contrast, international markets showed a slight resilience with a 3% growth. Performance across product categories also saw downward trends:
- Footwear: Decreased by 12%
- Apparel: Decreased by 3%
- Accessories: Decreased by 3%
Direct-to-consumer sales dropped by 4%, heavily impacted by a 7% decline in e-commerce activity. Gross margin also tightened, falling 310 basis points to 44.4%, driven by unfavorable channel mixes and tariffs.
Restructuring Progress and Net Loss
The company reported a net loss of $431 million for the quarter, largely influenced by tax asset valuation allowances. However, on an adjusted basis, net income stood at $37 million.
CEO Kevin Plank characterized the December quarter as the “most challenging phase” of the brand’s pivot. The ongoing restructuring plan, first announced in May 2024, has already incurred $178 million in charges out of a projected $255 million total cost. Plank expressed optimism, noting that adjusted operating results exceeded internal expectations.
2026 Fiscal Outlook
Under Armour has updated its projections for the full fiscal year 2026:
- Revenue: Expected to decline by approximately 4% annually.
- Regional Shifts: An 8% drop is anticipated in North America, while the EMEA region (Europe, Middle East, and Africa) is expected to grow by 9%.
- Operating Profit: While an operating loss of $154 million is estimated, the adjusted operating income is projected to reach $110 million.
The company expects to complete its restructuring process by the end of fiscal 2026, aiming for long-term stability and a “reignited” brand momentum.