Under Armour’s second quarter results were met with a significant negative market reaction, as revenue fell short of Wall Street expectations and declined year over year. Management attributed the shortfall to softer consumer demand, particularly in North America and Asia Pacific, and a promotional retail environment. CEO Kevin Plank described the quarter as a “reset,” emphasizing ongoing efforts to simplify the product lineup and improve operational efficiency. He noted that the company is focused on “selling so much more of so many less products at a much higher full retail price,” acknowledging that the business remains heavily reliant on promotions and faces challenges translating brand moments into consumer demand.
Is now the time to buy UAA? Find out in our full research report (it’s free for active Edge members).
Under Armour (UAA) Q2 CY2026 Highlights:
- Revenue: $1.10 billion vs analyst estimates of $1.11 billion (3.2% year-on-year decline, 1.1% miss)
- Adjusted EPS: $0.05 vs analyst estimates of $0.02 (significant beat)
- Adjusted Operating Income: $52.39 million vs analyst estimates of $35.58 million (4.8% margin, 47.2% beat)
- Management reiterated its full-year Adjusted EPS guidance of $0.10 at the midpoint
- Operating Margin: 4.3%, up from 0.3% in the same quarter last year
- Locations: 438 at quarter end, down from 442 in the same quarter last year
- Constant Currency Revenue fell 4.4% year on year, in line with the same quarter last year
- Market Capitalization: $2.28 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Under Armour’s Q2 Earnings Call
- Jay Sole (UBS) asked about the intentionality behind the Bouncy Tee’s success and how those learnings apply to future product launches. CEO Kevin Plank emphasized a consistent formula of innovation, culture, and focused marketing for future introductions.
- Samuel Poser (Williams Trading) pressed for details on SKU reduction, product focus, and inventory strategy. Plank explained that SKU cuts target low-productivity items and aim to improve per-style productivity, while CFO Reza Taleghani noted inventory should trend in line with revenue due to natural sales cycles.
- Robert Drbul (BTIG) sought clarification on the drivers behind the revised revenue outlook and marketing priorities. Plank pointed to traffic declines in the U.S. and Asia Pacific from late May, with the company choosing disciplined marketplace management over chasing short-term sales.
- Brooke Roach (Goldman Sachs) inquired about the proactive nature of revenue pullbacks in North America and SG&A savings. Taleghani highlighted that new product launches and disciplined wholesale execution are expected to drive improvement, and that SG&A savings stem from both restructuring and lower marketing spend.
- Laurent Vasilescu (BNP Paribas) queried about regional traffic trends and second-half expectations. Plank described ongoing promotional pressure and consumer uncertainty in North America and China, while Taleghani confirmed that gross margin discipline and tight SG&A are expected to support results.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be watching (1) the rollout and consumer uptake of new product launches like the Helix Tee and expanded sportswear offerings, (2) the impact of further SKU reductions on inventory health and margin improvement, and (3) signs of traffic stabilization or improvement in North America and Asia Pacific. How Under Armour manages its promotional mix and executes brand storytelling will also be critical to tracking the turnaround.
Under Armour currently trades at $5.38, down from $6.40 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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