Under Armour Narrows 2026 EPS Guidance to $2.40–$2.50 Despite 5% Sales Growth
Under Armour reported Q1 revenue of $1.57 billion, up 5% year-over-year, and narrowed its fiscal 2026 adjusted EPS guidance to $2.40–$2.50 after channel inventories rose 12%. Management emphasized that consumer demand held steady, attributing margin pressures to higher shipping costs and elevated inventory levels.
1. Q1 Earnings and Revenue
Under Armour posted first-quarter net revenue of $1.57 billion, a 5% increase versus the prior year, driven by strength in North America and direct-to-consumer channels.
2. Inventory and Cost Pressures
Channel inventories climbed 12% sequentially, and elevated freight and logistics expenses compressed gross margin by 220 basis points.
3. Revised Fiscal 2026 Guidance
The company tightened its full-year adjusted EPS outlook to a range of $2.40–$2.50 from $2.35–$2.60, reflecting inventory normalization and cost headwinds.
4. Management’s Outlook
Executive leadership reiterated that end-consumer demand remains robust, identifying supply chain inefficiencies and elevated inventories as the primary near-term challenges.