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The athletic apparel company now expects full-year revenue to fall at a mid-single-digit rate, compared with its prior forecast of a slight decline
Under Armour $UAA cut its full-year revenue outlook on Friday, citing weaker-than-expected consumer demand, particularly in North America and Asia-Pacific. Under Armour's revised guidance calls for fiscal 2027 revenue to drop at a mid-single-digit pace, a steeper projected decline than the modest dip it had previously anticipated.
North America revenue, the company's largest segment, fell 9% to $609.8 million in the quarter ended June 30. Total revenue for the quarter declined 3% to $1.10 billion, the company said. The updated annual outlook calls for a mid-single-digit decline in North America, a downgrade from the prior expectation of a low-single-digit decline, while both Asia-Pacific and EMEA are now expected to post low-single-digit declines after the company previously forecast low-single-digit growth in each region.
Despite the weaker sales picture, Under Armour held its full-year operating income forecast at $96 million to $116 million. The company said it expects to offset the impact of lower revenue through tighter expense management. The outlook includes an approximately $70 million benefit from refunds of International Emergency Economic Powers Act tariff costs expensed in fiscal 2026, as well as roughly $35 million in costs tied to the conflict in the Middle East, the company said.
