Under Armour Lowers Fiscal 2027 Gross Margin Guidance

Under Armour, Inc. reduced its expected gross margin improvement for fiscal year 2027 to a range of 170–220 basis points, down from its previous forecast of 220–270 basis points. The company cited foreign exchange headwinds, inventory actions, and increased freight and fuel costs as the primary drivers for the revision.

Despite these headwinds and a 7% year-over-year decline in revenue, the company beat sales estimates by $20 million. Performance in North America, EMEA, and Latin America exceeded internal expectations.

Under Armour maintained its adjusted operating income guidance between $140 million and $160 million. The company expects adjusted earnings per share to fall between 8 and 12 cents, while unadjusted earnings per share are projected to range from a 2-cent loss to a 2-cent profit.