Sales and earnings are different measures
Under Armour reported unaudited second-quarter fiscal 2027 revenue of $1.24 billion on November 6, down 7% from a year earlier. The quarter ended September 30, 2026. Footwear sales fell 11%, apparel declined 6% and direct-to-consumer revenue fell 8%.
Reported operating income was $15 million, while adjusted operating income was $25 million. The company recorded a $0.4 million net loss; its adjusted net loss was $2 million. The adjusted figures exclude specified items and are not interchangeable with GAAP results.
What changed in the full-year forecast
Under Armour still expects fiscal 2027 revenue to fall at a mid-single-digit percentage rate. It now forecasts gross-margin expansion of 170 to 220 basis points, compared with its previous range of 220 to 270. It cites fuel and freight costs, planned inventory actions and currency pressures.
The outlook includes approximately 150 basis points of gross-margin improvement from recovery of prior-year tariff costs, realised in the first quarter. That benefit is separate from the business’s underlying margin improvement.
Inventory and restructuring remain in focus
Quarter-end inventory rose 4% to $1.1 billion. The company expects its restructuring plan to be substantially complete by December 31, 2026. That is a forecast, rather than a completed milestone.
The linked release includes the financial tables and reconciliations for comparing reported and adjusted measures. These results do not establish future store prices, discounts or share-price performance.
