A month has gone by since the last earnings report for Under Armour (UAA Quick QuoteUAA - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Under Armour due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

UAA Q4 Loss Meets Estimates Amid Strong International Growth Momentum

Under Armour has delivered an adjusted loss of 3 cents per share for the fourth quarter of fiscal 2026, which met the Zacks Consensus Estimate. The loss narrowed 62.5% from an adjusted loss of 8 cents in the prior-year period. Quarterly revenues were $1,171.2 million, edging down 0.8% year over year but beating the consensus estimate of $1,170 million. On a constant-currency basis, revenues decreased 4.2% year over year.

UAA’s International Momentum Supports Top Line

Regional performance remained split. North America revenues declined 7% to $640.9 million, continuing to weigh on the company’s overall trajectory.

However, international business remained strong, with revenues increasing 10.4% to $539 million (up 3% on a constant-currency basis), offering a meaningful offset. Within international markets, the Asia-Pacific revenues jumped 12.7%, Latin America increased 22.4% and EMEA revenues grew 7.1%, underscoring that demand outside North America remained comparatively resilient.

Under Armour’s DTC Gains Partly Offset Wholesale Softness

By distribution channel, wholesale revenues decreased 3% year over year to $748 million, signaling continued caution in partner ordering and a tougher promotional backdrop in key markets.

Direct-to-consumer revenues increased 5% year over year to $406 million. Owned-and-operated store revenues grew 8%, while e-commerce revenues were flat and represented 35% of the total DTC revenues for the quarter, pointing to steadier demand through the company’s own channels despite uneven wholesale trends.

UAA’s Category Results Show Stabilization in Core Lines

Across product categories, apparel revenues were flat year over year at $778 million. Footwear revenues were also flat at $282 million. Accessories grew 2.3% to $93.7 million.

Under Armour’s Margin Pressure Highlights Tariff Headwinds

UAA’s gross profit declined 10.7% year over year to $492 million in fourth-quarter fiscal 2026. The gross margin contracted 470 basis points to 42% from 46.7% in the prior-year quarter. Excluding restructuring impacts, the adjusted gross margin declined 360 basis points to 43.1%.

The margin pressure was primarily driven by higher tariffs, elevated product costs, pricing headwinds and an unfavorable regional mix. Management also noted that these challenges were partially offset by favorable channel mix and foreign-exchange gains during the quarter.

Selling, general and administrative expenses declined 15% year over year to $517.7 million, reflecting lower marketing spend due to timing shifts, reduced incentive compensation and disciplined expense management. Excluding transformation-related expenses tied to the fiscal 2025 Restructuring Plan, adjusted SG&A decreased 14% to $502.6 million. 

Under Armour reported an operating loss of $33.7 million for the quarter. However, excluding restructuring and transformation-related charges, adjusted operating income came in at $2.7 million against an adjusted operating loss of $35.6 million in the year-ago quarter.

Under Armour’s Financial Snapshot

At the end of fourth-quarter fiscal 2026, Under Armour held $309 million in cash and cash equivalents. The company also maintained $605 million in restricted investments allocated toward the repayment of senior notes maturing in June 2026. At the quarter-end, outstanding borrowings under its $1.1-billion revolving credit facility stood at $200 million. Inventory levels decreased 3% year over year to $914.8 million, highlighting ongoing inventory optimization efforts.

UAA’s Restructuring Plan Details

Under Armour also provided an update on its fiscal 2025 Restructuring Plan, which is aimed at improving operational efficiency and streamlining the business. During the fourth quarter, the company recorded $8 million in restructuring charges, $13 million in restructuring-related costs within cost of goods sold and $15 million in transformation-related SG&A expenses, bringing total restructuring and transformation costs incurred to date to approximately $261 million.

Management noted that the total restructuring program costs are expected to reach $305 million, slightly above the prior mentioned $255 million. The revised estimate includes around $109 million in cash charges and roughly $152 million in non-cash charges incurred to date. The company expects the restructuring plan to be substantially complete by Dec. 31, 2026.

Under Armour Provides FY27 Outlook

For fiscal 2027, Under Armour expects revenues to decline slightly year over year. Management projects a low-single-digit decline in North America revenues, partially offset by low-single-digit growth in the EMEA and the Asia-Pacific regions.

The company anticipates gross margin expansion of 220-270 basis points compared with fiscal 2026 levels. Approximately 150 basis points of the expected improvement is tied to the assumed reversal of International Emergency Economic Powers Act (“IEEPA”) tariff costs recorded in fiscal 2026. Excluding this benefit, management expects margin improvement to be supported by pricing actions and a more favorable channel mix, partly offset by higher tariff rates currently in place and supply-chain headwinds related to the Middle East conflict.

Selling, general and administrative expenses are projected to decline at a low-single-digit rate, including additional transformation expenses associated with the fiscal 2025 Restructuring Plan. Adjusted SG&A is expected to rise at a low-single-digit rate due to normalized incentive compensation, benefit costs, incremental marketing investments and continued tariff mitigation efforts.

Under Armour expects fiscal 2027 operating income between $96 million and $116 million. Adjusted operating income is projected to be $140 million to $160 million, including a $70-million benefit from expected tariff-related refunds, $35 million of headwinds tied to the Middle East conflict and $30 million in incremental marketing investments.

The bottom line is expected to range from breakeven to a loss of 4 cents for fiscal 2027. Adjusted earnings per share are projected between 8 cents and 12 cents, reflecting continued investments and external cost pressures, partly offset by tariff-related benefits.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 337.5% due to these changes.

VGM Scores

Currently, Under Armour has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Under Armour has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Under Armour is part of the Zacks Textile - Apparel industry. Over the past month, Revolve Group (RVLV Quick QuoteRVLV - Free Report) , a stock from the same industry, has gained 16.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Revolve Group reported revenues of $342.88 million in the last reported quarter, representing a year-over-year change of +15.6%. EPS of $0.20 for the same period compares with $0.16 a year ago.

For the current quarter, Revolve Group is expected to post earnings of $0.21 per share, indicating a change of +50% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Revolve Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.