By Adriano Marchese

Under Armour expects revenue to fall at the milder end of its fiscal 2026 forecast, even as weak demand in its key North American and Asia-Pacific markets and tariff pressures persist into the new year.

Shares were up 4% to $6.53 in premarket trading.

The athletic-apparel company on Friday said it expects revenue to decline about 4% in fiscal 2026, compared with a previous outlook of between 4% and 5% decline. Within its markets, North America and Asia-Pacific are expected to fall about 8% and 6%, respectively, easing up from previous expectations of high-single-digit declines.

Higher U.S. tariffs continue to be a weight in the new fiscal year, Under Armour said. Gross margin is expected to decline about 190 basis points, at the low end of its prior outlook of a decline of 190 to 210 basis points.

Loss per share is expected between $1.24 to $1.25 for the year, and adjusted earnings per share are expected to be 10 cents to 11 cents, up from the prior outlook of 3 cents to 5 cents.

For the three months ended Dec. 31, Under Armour posted a net loss of $430.8 million, or $1.01 a share, compared with a profit of $1.23 million, which was nil a share, in the same quarter a year earlier.

The company noted that higher tariffs affected profitability in the fiscal third quarter, pressuring gross margin to decline 310 basis points to 44.4%.

Adjusted earnings were 9 cents a share in the quarter. According to FactSet, analysts were expecting 1 cent a share.

Revenue fell 5.2% to $1.33 billion due largely to declines in its major markets of North America and Asia-Pacific, which declined 10% and 5%, respectively. Analysts expected $1.31 billion.

The declines offset gains in its other international markets of EMEA and Latin America.

Wholesale revenue also decreased, falling about 6%, while direct-to-consumer revenue fell 4%.

By category, Under Armour said apparel revenue, its largest segment, fell 3%, while its smaller footwear and accessories segments saw revenue fall 12% and 3%, respectively.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 06, 2026 07:46 ET (12:46 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.