Under Armour’s first quarter results were met with a sharp negative market reaction following flat revenues and a notable miss on adjusted EBITDA. Management attributed the underperformance to ongoing brand and product transformation efforts as well as lingering external pressures, such as tariffs and a cautious retail environment in North America. CEO Kevin Plank acknowledged, “We are not improving our bottom line fast enough,” highlighting the company’s focus on enhancing the quality of sales by exiting less profitable segments and reducing product complexity. The quarter was characterized by deliberate moves to prioritize margin improvement and operational discipline over pure sales growth.
Is now the time to buy UAA? Find out in our full research report (it’s free for active Edge members).
Under Armour (UAA) Q1 CY2026 Highlights:
- Revenue: $1.17 billion vs analyst estimates of $1.17 billion (flat year on year, in line)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.02 ($0.01 miss)
- Adjusted EBITDA: $28.76 million vs analyst estimates of $39.78 million (2.5% margin, 27.7% miss)
- Adjusted EPS guidance for the upcoming financial year 2027 is $0.10 at the midpoint, missing analyst estimates by 55.9%
- Operating Margin: -2.9%, up from -6.1% in the same quarter last year
- Locations: 443 at quarter end, up from 441 in the same quarter last year
- Constant Currency Revenue fell 4.2% year on year (-10% in the same quarter last year)
- Market Capitalization: $2.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Under Armour’s Q1 Earnings Call
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Jay Sole (UBS) asked about the timeline for returning to top-line growth. CEO Kevin Plank and CFO Reza Taleghani responded that stabilization should occur this year, with growth expected as product and marketing strategies take hold.
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Simeon Siegel (Guggenheim) inquired about the intentionality behind North America revenue declines and gross margin drivers. Taleghani detailed the mix of proactive pullbacks and external softness, emphasizing ongoing gross margin improvement through premiumization and product focus.
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Peter McGoldrick (Stifel) sought clarity on the “quality of sales” strategy and the embedded impact of stepping away from low-value business. Taleghani described an ongoing shift toward higher-priced, more innovative products, with Plank stressing the long-term nature of this approach.
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Samuel Poser (Williams Trading) questioned Under Armour’s sports focus post-Boston Marathon wins. Plank outlined renewed emphasis on running, training, and team sports, and highlighted efforts to create versatile, high-performance apparel.
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Rakesh Patel (Raymond James) asked about e-commerce traffic improvement levers and product segmentation between direct-to-consumer and wholesale. Taleghani discussed plans to elevate the brand online and drive higher average selling prices, while Plank emphasized the importance of intentional product presentation across all channels.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) signs of improved sell-through and inventory quality in North America, (2) the effectiveness of targeted marketing investments in driving higher full-price sales and consumer engagement, and (3) continued stabilization or growth in international markets, particularly EMEA and China. Execution on new product launches and ongoing SKU simplification will also be critical milestones.
Under Armour currently trades at $5.03, down from $6.06 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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