Under Armour (UA) Q3 2026 earnings summary

Executive summary

• Entered next phase of turnaround with focus on execution, simplification, and accountability, with leadership changes to accelerate speed and align product, pricing, and margin performance.

• Net revenues for the quarter ended December 31, 2025, decreased 5.2% year-over-year, with declines in both wholesale and direct-to-consumer channels, and across apparel, footwear, and accessories categories.

• Adjusted Q3 results exceeded expectations despite non-recurring impacts, with progress in brand momentum and business transformation initiatives.

• Brand health, especially in the U.S. and among younger athletes, is improving; digital engagement remains strong.

• Most disruptive phase of reset is considered behind; focus now on stabilization and consistent execution.

Financial highlights

• Q3 revenue declined 5% year-over-year to $1.33 billion, slightly better than outlook; currency-neutral decline was 6%.

• Gross margin declined 310 bps to 44.4%, mainly due to supply chain headwinds, higher U.S. tariffs, and a more promotional environment.

• Reported Q3 operating loss of $150 million; adjusted operating income was $26 million.

• Net loss for the quarter was $430.8 million, driven by restructuring charges, increased litigation reserves, and a significant income tax expense due to valuation allowances on deferred tax assets.

• Adjusted diluted EPS for Q3 was $0.09; reported diluted loss per share was $1.01 due to non-cash tax valuation allowance and other charges.

Outlook and guidance

• FY26 revenue expected to decline ~4% (improved from prior 4-5% decline outlook), with North America down ~8%, APAC ~6%, and EMEA to grow ~9%.

• Full-year gross margin expected to decline ~190 bps, mainly due to tariffs and mix.

• Adjusted SG&A to decline mid-single digits; adjusted operating income expected at high end of $95–$110 million range.

• Adjusted diluted EPS expected at $0.10–$0.11 for FY26.

• Management expects continued negative impacts from tariffs and macroeconomic factors in Fiscal 2026, with an anticipated $80 million increase in cost of goods sold and a 160 basis point impact on gross profit.