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Under Armour Guides Below Expectations After Q4 Miss; Shares Tumble

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Under Armour Guides Below Expectations After Q4 Miss; Shares Tumble

Under Armour (UAA) issued weaker-than-expected full-year guidance on Tuesday after the sportswear maker's fiscal fourth-quarter adjusted loss narrowed less than analysts anticipated.

The company expects adjusted earnings of $0.08 to $0.12 per share in fiscal 2027, below the $0.23 consensus on FactSet. The outlook reflects continued investment and external cost pressures, partially offset by tariff-related refunds, the company said.

Revenue is projected to decline "slightly" this year, compared with Wall Street's expectation for $5.05 billion. Under Armour anticipates a low-single-digit sales decline in North America, while EMEA and Asia Pacific are expected to grow at a similar rate.

"That outlook reflects both continued consumer uncertainty and the deliberate choices we're making to reshape the business," CEO Kevin Plank said on an earnings call, according to a FactSet transcript. "We are prioritizing revenue quality over volume, strengthening the foundation and positioning the company to return to growth with stronger profitability and a more consistent brand expression."

Under Armour's shares slumped 19% in Tuesday trading.

The company expanded its restructuring program launched in 2024, bringing total expected costs to about $305 million. It has incurred $261 million to date and aims to substantially complete the plan by December.

In the three months ended March 31, the adjusted loss narrowed to $0.03 per share from $0.08 a year earlier, missing the $0.02 loss analysts expected. Revenue slipped 1% to $1.17 billion, roughly in line with estimates. North America sales fell 7%, while EMEA rose 7%, Asia Pacific gained 13%, and Latin America jumped 22%.

Wholesale revenue declined 2.6% to $747.7 million, while direct-to-consumer sales rose 5.1% to $405.7 million. Apparel revenue eased 0.3% to $778 million, footwear was little changed at $281.8 million, and accessories increased 2.3% to $93.7 million.

In the current quarter, the company expects adjusted EPS of breakeven to $0.02 and revenue to decline 2% to 3%, compared with Wall Street forecasts for $0.01 per share and $1.14 billion in sales.

"Overall, we expect the first quarter to represent the weakest revenue performance of the year, with growth rates improving progressively through the balance of fiscal 2027," Chief Financial Officer Reza Taleghani said on the call.

Price: $4.92, Change: $-1.15, Percent Change: -18.89%

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