By Nate Wolf

Shares of Under Armour plummeted Tuesday after the sportswear retailer finished off a third consecutive fiscal year of falling sales and issued weak guidance for 2027.

The company reported an adjusted loss of 3 cents a share for the fiscal fourth quarter, a tick below analysts' consensus call for a loss of 2 cents. Sales totaled $1.17 billion, down 4% on a constant-currency basis from a year ago and in line with Wall Street's forecast.

Under Armour guided for another slight decline in revenue in fiscal 2027, with adjusted earnings per share of 8 cents to 12 cents. Analysts had expected slight revenue growth and adjusted earnings of 23 cents a share.

Shares fell 18% to $4.95 on Tuesday.

Under Armour has struggled to keep up with larger rivals Nike and Adidas for years, and is now falling behind On Holding and Hoka, the running brand owned by Deckers Outdoor. The company's fiscal 2026 sales of $4.97 billion were nearly the same as a decade ago. Another decline in fiscal 2027 would mark four straight years of contraction.

Investors have punished the retailer accordingly. Under Armour now has a market cap of around $2.1 billion, down more than tenfold from a peak valuation of $22.5 billion in 2015, according to Dow Jones Market Data.

Tariffs haven't helped more recently. The company reported a 4.7-percentage point decline in gross margin in the fourth quarter from last year, primarily due to higher tariffs. It expects improved margins in 2027 given the pending reversal of the International Emergency Economic Powers Act tariffs that the Supreme Court struck down in February.

Write to Nate Wolf at nate.wolf@barrons.com

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May 12, 2026 11:03 ET (15:03 GMT)

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