The quarter came in slightly below the market’s revenue bar. Published expectations were roughly $1.11 billion of revenue and $0.02 of EPS; Under Armour delivered $1.098 billion and $0.00 of GAAP diluted EPS, although adjusted diluted EPS was $0.05.
| Metric | Q1 FY2027 | Q1 FY2026 | Market reference |
|---|---|---|---|
| Net revenue | $1,097.9M (Financial Statements) | $1,134.1M (Financial Statements) | ~$1.11B consensus |
| Revenue change | (3.2)% (Segment revenue table) | — | — |
| Gross margin | 54.1% (Financial Statements) | 48.2% (Financial Statements) | — |
| GAAP diluted EPS | $0.00 (Financial Statements) | $(0.01) (Financial Statements) | ~$0.02 consensus |
| Adjusted diluted EPS | $0.05 (Non-GAAP reconciliation) | $0.02 (Non-GAAP reconciliation) | — |
| Operating cash flow | $109.1M (Cash Flow statement) | $48.9M (Cash Flow statement) | — |
The underlying sales picture was weaker than the headline margin improvement suggests. North America revenue fell 9.0%, Asia-Pacific declined 6.6%, DTC fell 5.8%, and e-commerce dropped 12%; footwear was particularly soft at down 7.7% (Segment results tables). International growth was concentrated in EMEA, while total revenue declined 4.4% on a constant-currency basis (Constant Currency reconciliation).
The large gross-margin recovery was partly a one-time benefit, not purely operational progress. Gross margin expanded 590 basis points to 54.1%, but management attributed the improvement primarily to refunds related to previously expensed tariff costs (Financial Highlights). The company says roughly 150 basis points of the full-year margin expansion outlook comes from this benefit, limiting how much of the quarter’s margin improvement should be treated as recurring (Full-Year Outlook).
Management cut the revenue outlook, which is the clearest negative surprise in the filing. Full-year revenue is now expected to decline at a mid-single-digit rate instead of the previously expected slight decline; North America moved to a mid-single-digit decline, while Asia-Pacific and EMEA shifted from expected low-single-digit growth to low-single-digit declines (Full-Year Outlook). The company preserved its $96 million-$116 million operating-income range and $0.08-$0.12 adjusted EPS range by planning deeper expense reductions, but that is defensive offsetting rather than evidence of better demand (Full-Year Outlook).
Liquidity is stable, but the cash-flow headline is inflated by debt mechanics. Cash and cash equivalents ended at $396 million with $200 million drawn on the revolving facility, while $600 million moved from restricted investments to settle the matured notes (Liquidity; Cash Flow statement). Operating cash flow improved to $109 million, but inventories rose to $1.109 billion from $915 million at March 31, 2026, an important working-capital risk while sales are weakening (Balance Sheet; Cash Flow statement).
Net read: cost control and adjusted earnings beat a low bar, but the demand reset outweighs that improvement. The filing shows better gross margin and lower restructuring charges, yet revenue modestly missed expectations and the company lowered its full-year sales outlook. The result is a negative change in the earnings picture, even though the preserved profit targets and adjusted EPS beat provide some offset.
Read the original 8-K on SEC EDGAR ↗