Under Armour Inc. suffered a steep drop in early trading as the athletic apparel maker disclosed fourth-quarter and full-year fiscal 2026 unaudited results and provided a fiscal 2027 outlook that disappointed investors. The stock slid 13.75% in pre-open trade after the company set annual adjusted earnings-per-share guidance well below the street.
The firm projected adjusted profit per share for fiscal 2027 of between $0.08 and $0.12, compared with analysts' average expectation of $0.23. Management also signaled that annual revenue for the year would decline slightly, in contrast to analysts' consensus predicting a 1.6% rise to $5.05 billion.
Of particular concern to investors was management's forecast for North American sales - expected to decline by a low single-digit percentage - given the United States and Canada remain the company's most strategically important markets. That weakness amplifies other headwinds the company currently faces.
Ahead of the results, UBS had maintained a Buy rating and a $11 price target. UBS analyst Jay Sole had anticipated guidance in the range of $0.25 to $0.30 per share for the upcoming fiscal year and characterized market sentiment as "very bearish," suggesting that even modest guidance might have been enough to clear low expectations - a threshold the company's actual guidance failed to meet.
Following a company-wide review, Under Armour announced a targeted extension of its restructuring program. The expanded plan brings total program costs to approximately $305 million and is expected to be substantially complete by December 31, 2026. The additional charges and ongoing execution of restructuring actions are intended to address profitability and operating efficiency, but they also add near-term cost pressure.
From a broader market perspective, macroeconomic data was present in the background of trading as the Consumer Price Index for April 2026 was scheduled for release on May 12, 2026, at 8:30 a.m. Eastern Time. However, major U.S. indexes were largely unchanged in pre-market trade - the S&P 500 was up 0.19% and the Nasdaq gained 0.10% - indicating that the heavy selling in Under Armour shares was driven by company-specific developments rather than a broad market move.
Industrywide metrics included in the company's context show the global athletic apparel market is valued at $335 billion and expanding at an annual rate of 6.1%. Despite this growth in the sector, Under Armour has struggled to keep pace; total revenue declined 6.4% year over year.
Taken together, the combination of an earnings shortfall, a fiscal 2027 profit outlook roughly half of analysts' models, and continued deterioration in North American demand proved too much for investors. The company also continues to contend with negative net income and high leverage, factors that weigh on views of its balance-sheet resilience and extend the time horizon for any meaningful recovery.
While the firm has posted recent earnings beats at times, the current set of challenges - soft North American sales, declining revenue, additional restructuring costs, negative net income, and elevated leverage - underscore why management's new guidance triggered such a sharp market reaction. For investors watching turnaround progress, the updated forecast and added restructuring expenses suggest that a substantial recovery may not arrive as soon as some market participants had hoped.
What investors should note
- Under Armour forecast fiscal 2027 adjusted EPS of $0.08 to $0.12, versus analysts' $0.23 expectation.
- Revenue is expected to fall slightly, in contrast with a 1.6% growth consensus to $5.05 billion.
- The company extended restructuring actions, taking total program costs to about $305 million, with substantial completion expected by December 31, 2026.