Under Armour has announced a cut in its fiscal 2027 revenue outlook, now expecting a mid-single-digit percentage decline compared to its previous forecast of a slight decline. This revision is primarily driven by weaker consumer demand across key regions, specifically North America and Asia-Pacific. The company's updated guidance projects a mid-single-digit decline in North America, a notable change from the earlier low-single-digit decline expectation. Similarly, Asia-Pacific and EMEA are now both anticipated to see low-single-digit declines, shifting from prior expectations of low-single-digit increases for both regions.
Despite the reduced revenue expectations, Under Armour is maintaining its full-year profitability outlook. The company still projects operating income to be in the range of $96 million to $116 million, and adjusted operating income to remain between $140 million and $160 million. This is expected to be achieved through disciplined expense management and operational adjustments designed to offset the impact of lower sales. The profitability outlook also incorporates a $70 million benefit from refunds of prior-year IEEPA tariff expenses, balanced against a $35 million headwind related to the conflict in the Middle East.
The diluted loss per share is now anticipated to range from $0.01 to $0.05, revised from the previous expectation of breakeven to a loss of $0.04. However, the adjusted diluted earnings per share, excluding transformation expenses and restructuring charges, is still expected to be between $0.08 and $0.12. In the first fiscal quarter of 2027, Under Armour reported a 3% decrease in revenue to $1.1 billion. North American revenue declined 9% to $609.8 million, while international revenue increased 5% to $490 million. Footwear sales fell 7.7% to $245.3 million, and apparel sales slipped 1.7% to $734,035.
