Under Armour’s revenue fell 7% to about $1.24 billion in the second quarter of its 2027 financial year. The results, released on 6 November, cover the three months ended 30 September 2026.
North American and international revenue each declined 7%. The figures show that the challenge extends beyond a single market, even as management continues to reshape products, costs and brand positioning.
Footwear and online sales feel the pressure
Footwear revenue declined 11%, while apparel was down 6%. Direct-to-consumer sales fell 8%, including a 12% drop in e-commerce. Those movements matter because selling directly can give a brand more control over its relationship with customers.
The gross margin slipped to 47%. A turnaround therefore requires more than cutting expenses: the company also needs demand for its products at prices that support profitability. Inventory rose 4% to about $1.1 billion, another measure to watch alongside sales.
Operating profit is not the bottom line
Under Armour reported operating income of about $15 million but a small net loss of roughly $0.4 million. Its adjusted operating income was $25 million. Operating and net results, and adjusted and accounting measures, describe different parts of the performance.
The latest quarter shows a business still working through its transformation rather than a completed recovery. The next test is whether product changes and spending discipline can stabilize demand without relying on promotions that weaken the brand’s longer-term pricing power.
