Under Armour said on Friday in its first quarter earnings report that it will see a deeper decline for the year than previously expected as weaker consumer demand in key areas like North America continue to impact the sportswear maker during its ongoing turnaround effort.
Quarterly revenue fell 3 percent to $1.1 billion over the same point last year with North America, its biggest market, seeing a sharp 9 percent dip at $610 million in revenue while the Asia Pacific region fell 6.6 percent at $152 million.
“As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook,” Under Armour president and CEO Kevin Plank said. “By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price.”
The Europe, Middle East and Africa market saw a 12 percent jump at $279 million in revenue while Latin America rose nearly 8 percent at $59 million.
Under Armour said its revised outlook puts yearly revenue down by a mid-single-digit percentage rather than a small loss.
Even with the lukewarm sales forecast, the company put its full-year operating income forecast at $96 million to $116 million through “disciplined expense management” and targeting the areas of the brand and product that are the biggest drivers of sales.
The company is deep into a restructuring effort that dates back to 2024 when Under Armour first announced a plan to work on boosting its financial and “operational efficiencies.” The plan was revised last November with a focus on core products and a surprising split from NBA superstar Stephen Curry after 13 years in a partnership that saw the formation of the Curry Brand.
At the time, Under Armour indicated that pointing toward stability by the end of fiscal year 2026 was a priority even as it absorbed $255 million in pre-tax costs associated with restructuring. Winding down the Curry Brand relationship would save nearly $50 million even as inventory from the collaboration continues to be sold but will end in October.
But in February, Plank was optimistic about the company moving past a “challenging phase” in December 2025 at a critical point in the brand’s reset.
