中文title: “Under Armour Cuts Full-Year Revenue Outlook as North America and Asia-Pacific Stall” seo_description: “Under Armour lowered its FY2027 revenue forecast on weak demand in North America and Asia-Pacific, but held profitability guidance as margins improve.” seo_tags: [“Under Armour”, “Kevin Plank”, “footwear revenue”, “North America”, “profitability”, “quarterly results”] seo_slug: “under-armour-revenue-outlook-2027” source_url: “https://www.worldfootwear.com/news/under-armour-lowers-fullyear-revenue-outlook-but-holds-profitability-guidance/11715.html”
Under Armour Cuts Full-Year Revenue Outlook as North America and Asia-Pacific Stall
Under Armour has spent the past two years trying to convince the market it is a sharper, more disciplined brand. The latest results suggest the discipline is real — but so is the demand problem it is trying to outrun.
The Baltimore-based company lowered its full-year revenue forecast for fiscal 2027, now expecting a mid-single-digit percentage decline, compared with a previous call for only a slight drop. The revision is squarely a demand story. “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,” said president and CEO Kevin Plank.
The weakness is geographically concentrated. In the first quarter, which ended 30 June, total revenue came in at US$1.1 billion, down 3% (4% on a constant-currency basis). North America — still the brand’s heartland — fell 9% to US$610 million. The Asia-Pacific region dropped 7% (10% constant currency). International as a whole managed a 5% rise to US$490 million, lifted by a 12% gain in EMEA and an 8% rise in Latin America, but those bright spots could not mask the softness at home and in Asia.
By category, the story repeats. Apparel declined 2% to US$734 million, accessories fell 4% to US$96 million, and footwear — the segment Under Armour has fought hardest to revitalise — dropped 8% to US$245 million. For a company whose turnaround thesis partly rests on winning back the athlete, an 8% footwear decline is the metric investors will watch most closely.
Yet here is the genuinely encouraging part. Under Armour is protecting profitability even as top-line growth slips. Gross margin expanded a remarkable 590 basis points to 54.1% in the quarter, helped by refunds related to IEEPA tariff costs that were expensed in fiscal 2026, though partially offset by foreign-exchange headwinds and pricing pressure. Operating income reached US$47 million, and adjusted operating income (excluding transformation and restructuring charges) hit US$52 million, against just US$3 million and US$24 million a year earlier. Diluted EPS was flat at US$0.00, but adjusted EPS of US$0.05 compared with US$0.02.
That margin recovery is why the company felt able to hold its profit guidance even while cutting the revenue outlook. For the full year, operating income is still expected at US$96–116 million, with adjusted operating income of US$140–160 million and adjusted diluted EPS of US$0.08–0.12. Plank framed the trade-off explicitly: “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.”
It is a credible strategy — fewer styles, cleaner brand messaging, less discounting — and the margin maths supports it. But the risk is that “protect profitability” becomes a euphemism for “manage decline” if the demand environment does not stabilise. North America’s 9% drop is not a one-quarter wobble; it reflects a brand still searching for cultural relevance with the core US athlete. Asia-Pacific’s 7% fall, in a region where sportswear rivals are growing, is equally concerning.
Under Armour’s first-quarter results, then, are a tale of two companies: a leaner, more profitable operating machine, and a demand base that is shrinking in the exact markets it cannot afford to lose. The restructuring is working on cost. Whether it can reignite desire for the product is the question that will define fiscal 2027 — and the guidance hold on profit is only as good as the demand that eventually returns.
Source: World Footwear (worldfootwear.com), reporting on Under Armour’s Q1 FY2027 results, August 2026.
