Under Armour (UAAC) Q2 2027 Earnings Report

The call presented a substantial transformation agenda, with encouraging product, brand-engagement, cost-discipline, and selected franchise achievements. However, current operating performance remains under pressure, with declining revenue across major regions and channels, broad footwear weakness, elevated inventory, promotional conditions, reduced gross-margin expectations, and continued external and restructuring costs. The positive strategic initiatives and isolated areas of strength were balanced by significant near-term business challenges.

For fiscal 27, the company expects revenue to decline at a mid single digit rate, adjusted SG&A to decline at a low single digit rate, gross margin expansion of 170 to 22 basis points, including roughly 150 basis points of benefit from IEEPA tariff refunds related to cost expense in fiscal 26, or approximately 20 to 70 basis points excluding that benefit, and adjusted operating income of the $140 million to $160 million range, including about $70 million of benefit from IEPA tariff refunds, approximately $44 million of restructuring transformation expenses, a $3 million benefit from the litigation reserve accrual reversal, and about $45 million of headwinds related to the ongoing Middle East conflict; adjusted diluted earnings per share are expected to be $0.08 to $0.12, and fiscal 27 capital expenditures are expected to be modestly below last year's level. For the third quarter, revenue is expected to decline approximately 8% to 9%, including a low double digit decline in North America, a high single digit decline in EMEA, and roughly flat revenue in APAC; gross margin is expected to increase 30 to 50 basis points, adjusted SG&A to decline at a low single digit rate, adjusted operating income to range from a loss of $5 million to a profit of $5 million, and adjusted diluted loss per share to be $0.01 to $0.03.