Under Armour Reports Q2 Fiscal 2027 Revenue Decline Amid Strategic Restructuring
Under Armour (UAA) reported a 7% year-over-year decline in second-quarter revenue, totaling $1.2 billion, during its fiscal 2027 earnings call. To combat declining sales and protect profitability, CEO Kevin Plank announced an aggressive restructuring plan aimed at reducing product complexity by nearly 50% in stock-keeping units (SKUs). This move is intended to minimize low-performing inventory and reduce the need for heavy discounting. The company is also shifting toward an asset-light model by transitioning its youth apparel line to a licensing agreement with Centric Brands. Additionally, management plans to centralize global marketing efforts through monthly product launches to improve efficiency. While direct-to-consumer sales remain under pressure, leadership expects expense discipline and core product strengths in football cleats and performance apparel to help stabilize margins.
Tickers: $UAA
Topics: earnings report licensing agreement restructuring revenue decline SKU reduction
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