Under Armour warns of bigger Middle East hit, cuts annual gross margin growth target
UAA•Under Armour expects a roughly $45 million impact from the Middle East conflict, up from its prior $35 million view, and lowered its annual gross margin growth forecast to 170–220 basis points from 220–270 basis points.
1. Forecast lowered
Under Armour warned of a bigger hit to operating income from the Middle East conflict and lowered its annual gross margin growth forecast to 170–220 basis points, from 220–270 basis points. It expects a roughly $45 million impact from the conflict, up from its prior view of $35 million.
2. Quarterly results
Revenue fell about 7% to $1.24 billion, slightly above analysts’ average estimate of $1.23 billion. Adjusted earnings were breakeven, compared with estimates of a 1-cent loss per share. North American segment revenue fell about 7% to $737.2 million in the quarter ended September 30.
3. Costs and support
The company joined businesses anticipating higher transportation and supply-chain costs due to the surge in oil prices triggered by the Iran war. It expects higher prices and refunds from IEEPA tariff expenses to help support margins for fiscal 2027.
