Under Armour Reports 5.2% Revenue Decline and $430.8 Million Net Loss in Q3 Fiscal 2026

Under Armour, Inc. reported a decline in financial performance for the third quarter of fiscal 2026, with total net revenues of $1.33 billion, a decrease of 5.2% compared to $1.40 billion in the same period last year. The company's gross profit also fell to $589.7 million, resulting in a gross margin of 44.4%, down from 47.5% in the prior year. The decline in revenue was attributed to lower consumer demand across both wholesale and direct-to-consumer channels, particularly in North America, where revenues decreased by 10.3%. In contrast, the EMEA region saw a revenue increase of 6.0%.

The company's net loss for the quarter was $430.8 million, compared to a net income of $1.2 million in the same quarter of the previous year. This significant shift was influenced by a rise in selling, general, and administrative expenses, which increased by 4.2% to $664.5 million. Additionally, restructuring charges related to the 2025 restructuring plan amounted to $74.98 million, a substantial increase from $13.95 million in the prior year, reflecting costs associated with the separation of the Curry Brand and other transformational initiatives.

Under Armour's operational metrics showed mixed results, with a notable increase in license revenues, which rose by 13.6% to $27.2 million. However, the company faced challenges in its product categories, with apparel revenue decreasing by 3.3%, footwear by 12.0%, and accessories by 2.5%. The direct-to-consumer channel also experienced a decline, with revenues falling by 3.9%. The company reported a total of 188.8 million shares of Class A Common Stock outstanding as of December 31, 2025.

In terms of strategic developments, Under Armour is undergoing a significant restructuring plan aimed at enhancing operational efficiencies, with an estimated total cost of up to $255 million. The plan includes cash-related charges of approximately $107 million and non-cash charges of about $148 million. The company anticipates that the restructuring will be substantially complete by the end of fiscal 2026. Furthermore, Under Armour has authorized a share repurchase program of up to $500 million, with $115 million already utilized to repurchase Class C Common Stock.

Looking ahead, Under Armour's management has expressed concerns about ongoing macroeconomic challenges, including inflationary pressures and changes in global trade policy, which are expected to impact profitability in fiscal 2026. The company is actively monitoring these factors and implementing strategies to mitigate their effects, while also focusing on enhancing consumer engagement through digital initiatives and expanding its market presence.