Under Armour Q2 revenue falls 7%, misses estimates
Overview
US athletic apparel maker's fiscal Q2 revenue fell 7%, missing analyst expectations
Adjusted EPS declined to $0.00, but beat analyst estimates
Company maintains outlook for mid-single-digit revenue decline in fiscal 2027
Outlook
Under Armour expects fiscal 2027 revenue to decline at a mid-single-digit percentage rate
Company sees fiscal 2027 operating income of $99 mln to $119 mln, up from $96 mln to $116 mln prior
Under Armour expects fiscal 2027 diluted EPS between a loss of $0.02 and earnings of $0.02
Result Drivers
WEAK DEMAND - North America and international sales declined 7% each, with decreases across wholesale and direct-to-consumer channels
CATEGORY DECLINES - Apparel, footwear and accessories all posted lower sales, with footwear down 11% and apparel down 6%
MARGIN PRESSURE - Gross margin decreased due to unfavorable foreign currency, channel and regional mix, and pricing, partially offset by supply chain benefits and favorable product mix
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1.20 bln | $1.22 bln (17 Analysts) |
Q2 Adjusted EPS | Beat | $0 | -$0.008 (19 Analysts) |
Q2 Adjusted Net Loss | $2 mln | ||
Q2 Net Loss | $400,000 | ||
Q2 Gross Margin | 47.00% | ||
Q2 EBIT | $15 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 19 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy."
Wall Street's median 12-month price target for Under Armour Inc is $5.50, about 1.3% below its November 5 closing price of $5.57
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 45 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)