Under Armour warns of broad weakness and sees deeper Q3 sales drop
Under Armour expects third-quarter revenue to fall 8% to 9%, steeper than analysts forecast, and trimmed its annual gross margin outlook, Reuters reported.
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what happened
Under Armour reported declines in every major product category in the second quarter. Footwear sales dropped about 11%, apparel fell 6% and accessories slipped about 7%. The company now expects third-quarter revenue to shrink 8% to 9%, while analysts polled by LSEG had pencilled in a decline of about 4%. It also guided to an adjusted loss of one to three cents a share in the quarter, well short of the four-cent profit analysts expected.
The annual gross margin forecast was cut as well, with growth now seen at 170 to 220 basis points against a previous 220 to 270. CFO Reza Taleghani said North America, a major revenue source, could fall more than previously expected this fiscal year because of traffic and macroeconomic pressures. The company raised its estimate of the Middle East conflict impact to roughly $45 million from $35 million.
why it matters
The guidance cut weakens the case for a quick recovery at the apparel maker. Morningstar analyst David Swartz said simplification and cost cuts are progressing, but weak industry demand, heavy promotions and high gas prices keep the turnaround under pressure.
market impact
Under Armour shares: weaker guidance and margin cut pressure the stock
- Under Armour shares pressure down — weaker revenue outlook and lower gross margin guidance
tags
instruments
sources
- Under Armour flags broad-based weakness, sees steeper-than-expected third-quarter sales decline — Reuters, 6 November 2026 at 16:27 UTC
- Under Armour flags broad-based weakness, sees steeper-than-expected third-quarter sales decline — Reuters, 6 November 2026 at 17:55 UTC
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