Under Armor expects revenue to decrease in Q2 FY26 after losing the first quarter

The US -based retail company, which is based in the United States, has announced its financial results for the first quarter (Q1) of the fiscal year 2026 (FY26), highlighting the decrease in revenues and cautious expectations for Q2.

The company’s revenues decreased by 4 % to $ 1.1 billion, as North America’s revenues decreased by 5 % to $ 670 million and international revenues by 1 % to 467 million dollars.

Despite these challenges, the total margin of Armor 70 basis points to 48.2 % improved, largely attributed to useful foreign exchange rates, strategic pricing decisions and a useful product mixture. This was partially balanced by the mixed channel mixture and an increase in supply chain expenses compared to the previous year.

“We are happy with the quarterly results that we have achieved or bypassed our expectations and we drive a bold shift – sharpening under the shields to a trademark where it meets mathematical credibility and elegance, operational discipline.”

Direct consumer revenues decreased by 3 % to $ 463 million, with 12 % decrease in e -commerce revenues.

The clothing revenue decreased slightly to 747 million dollars, and shoe revenues witnessed a significant decrease of 14 %, and accessories revenue became 8 % to $ 100 million.

The operating income was $ 3 million, while the modified operating income was 24 million dollars.

The retail seller recorded a net loss of 3 million dollars with a rate of $ 9 million income.

The cost of the 2025 financial restructuring plan for the company, which was announced in May 2024, is estimated at a cost of between 140 million dollars and 160 million dollars.

As of the end of the Q1 FY26, Under Armor recorded $ 71 million in restructuring and disability fees, along with $ 39 million in other relevant transformation expenses.

The plan is expected to be completed by the end of the 26th fiscal year.

Under Armor expects that Q2 FY26 revenues will decrease by 6 % and 7 %, with a decrease in two percent of two low numbers in North America and a percentage of the percent decreased in the Asia Pacific region.

The total margin is expected to decrease between 340 and 360 basis points due to the opposite wind of the supply chain, including the effect of definitions.

Public and administrative expenditures are expected to rise, driven by higher marketing investments.

The operating income can witness a loss of $ 10 million or a tie, with a modified operating income expecting between 30 million dollars and 40 million dollars.

It is expected that the reduced loss of the stock will range from $ 0.07 to $ 0.08, with the profits of one stock between $ 0.01 and $ 0.02.

Blanc added: “Moving forward, we focus on enhancing our brand mode with distinct products and increasing our average selling prices through innovative offers, improving our higher size programs, and creating a full proposal from prices to prices,” Blanc added.

“Under a shield, revenues expect to decrease in the second quarter of the year 26 after the loss of quarter 1” was originally created and published by Retail networkThe brand owned by Globaldata.

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