Under Armour Reports Q2 2027 Revenue Decline Amid DTC and Wholesale Pressures
Under Armour (UAA) reported a challenging second quarter for fiscal year 2027, with total revenue falling 7% year-over-year to $1.2 billion. The decline was driven by significant headwinds in both direct-to-consumer (DTC) traffic and softer wholesale demand across major regions including North America, EMEA, and APAC. Footwear revenue saw a notable 11% drop, while apparel revenue declined by 6% due to weakness in fleece and women's categories. Despite the top-line contraction, adjusted operating income of $25 million exceeded management's previous outlook, aided by disciplined SG&A spending and cost controls. The company is currently undergoing a restructuring program with total anticipated costs of $305 million and aims to reduce its SKU count by nearly 50% compared to 2024 levels to streamline operations. Looking ahead, Under Armour expects mid-single-digit revenue declines for the full fiscal year.
Topics: Direct-to-Consumer Gross Margin Operating Income Revenue decline Wholesale demand
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