Key Highlights

  • Total net revenues for the three months ended Sept. 30, 2026 were $1,241.743 million, against $1,333.380 million a year earlier.
  • Net sales decreased by $94.3 million, or 7.2%, to $1.2 billion.
  • Diluted EPS was $0.00, against a loss of $0.04.
  • Gross Margin decreased 30 basis points to 47.0%.
  • Selling, general and administrative expenses decreased 4.2%.

Under Armour (NYSE:UA), the sports apparel, footwear and accessories company, reported results for its fiscal second quarter ended Sept. 30, 2026, before the market opened on Friday. Total net revenues were $1,241.743 million, compared with $1,333.380 million a year earlier. Market estimates had pointed to Revenue of $1.23 billion and a loss of $0.01 per share.

Net sales decreased by $94.3 million, or 7.2%, to $1.2 billion. The company said apparel decreased primarily because of lower unit sales. License revenues were $27.8 million, down 4.1% from $29.0 million.

Earnings and Expense Trends

Net loss was $0.4 million, against a net loss of $18.8 million in the prior-year quarter. Diluted Net Income per share of Class A, B and C common stock was $0.00, compared with a loss of $0.04. Gross margin decreased 30 basis points to 47.0%, and selling, general and administrative expenses decreased 4.2%.

The effective tax rate was 98.6%, against 345.9% a year earlier, a change the company attributed primarily to period-over-period changes in pre-tax Earnings and forecasted pre-tax results.

Six-Month Results

For the six months, net sales decreased by $131.8 million, or 5.4%, to $2.3 billion. The company said apparel declined primarily because of lower unit sales and unfavorable channel mix. Total net revenues for the six months were $2,339.670 million, against $2,467.448 million, and net income was $0.1 million, against a net loss of $21.4 million.

Restructuring Plan and Balance Sheet

Under Armour has a 2025 restructuring plan designed to strengthen financial and operational efficiencies. Cash and cash equivalents were $284.6 million on Sept. 30, against $395.99 million a year earlier. The diluted weighted average share count was 429.7 million.

Unit Sales and Channel Mix Frame the Comparison

The company tied the decline in net sales to lower apparel unit sales, with net sales in Latin America up 3.0%. Gross margin and selling expense changes are the other items shown in the quarter.