Under Armour Reports 3.2% Revenue Decline but Achieves Net Income Improvement in Q2 2026

Under Armour, Inc. reported a decrease in net revenues for the three months ended June 30, 2026, totaling $1,097.9 million, down 3.2% from $1,134.1 million in the same period last year. The decline was attributed to a 1.6% drop in wholesale revenue and a 5.8% decrease in direct-to-consumer sales. Notably, revenue from North America fell by 9.0%, while the EMEA region saw a 12.1% increase. The company achieved a gross profit of $593.8 million, reflecting a gross margin of 54.1%, an increase of 590 basis points compared to the previous year, primarily due to favorable supply chain impacts and tariff recoveries.

In terms of profitability, Under Armour reported a net income of $545,000 for the quarter, a significant improvement from a net loss of $2.6 million in the prior year. The company’s income from operations rose to $46.7 million, compared to $3.3 million in the same quarter of 2025. This increase was supported by a reduction in restructuring charges, which fell to $4.0 million from $12.8 million a year earlier. Selling, general, and administrative expenses increased by 2.4% to $543.1 million, driven by higher marketing costs.

Operationally, Under Armour is undergoing a restructuring plan aimed at enhancing financial and operational efficiencies, with total pre-tax charges expected to reach $305 million. As of June 30, 2026, the company has recorded $266.3 million in restructuring charges. The restructuring plan is anticipated to be substantially complete by the end of 2026. The company also reported a significant increase in cash flow from operating activities, which rose to $109.1 million, up from $48.9 million in the previous year.

Under Armour's balance sheet as of June 30, 2026, showed total assets of $4.1 billion, down from $4.4 billion at the end of the previous quarter. The company’s cash and cash equivalents increased to $396 million, up from $309.2 million in the prior quarter. The company has also amended its credit agreement, increasing its revolving credit commitments to $1.1 billion, which will provide additional liquidity as it navigates current market challenges.

Looking ahead, Under Armour remains focused on driving sustainable growth through strategic initiatives, including enhancing its direct-to-consumer capabilities and optimizing its product offerings. However, the company acknowledges ongoing challenges in the market, including inflationary pressures and changes in global trade policies, which may impact future performance.