Under Armour Q3 exceeds expectations despite revenue decline

Sportswear giant Under Armour has reported Q3 adjusted operating results that have “exceeded expectations” as its ongoing transformation strategy picks up. This is despite a decline in revenue, particularly as performance in North America dampened figures.

For the quarter ended December 31, 2025, the company saw overall revenue drop 5 percent to 1.33 billion dollars, and 6 percent on a currency-neutral basis.

North America saw the sharpest decline at 10 percent to 757 million dollars, despite international revenue increasing 3 percent. While Asia-Pacific revenue fell 5 percent, EMEA and Latin America reported gains of 6 percent and 20 percent, respectively.

Revenue fell across wholesale and direct-to-consumer channels, with owned stores seeing sales drop 2 percent and e-commerce sales down 7 percent.

Gross margin fell 310 basis points to 44.4 percent, with Under Armour citing high tariffs as the primary cause. Pricing headwinds and an unfavourable channel and regional mix were also highlighted.

Operating loss came to 150 million dollars, down from a profit of 13.5 million dollars in the same period of the year prior. Net loss for the quarter was at 431 million dollars, declining on a profit of 1.2 million dollars.

In a statement, Under Armour president and CEO, Kevin Plank, said: “Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum.

“In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.”

For fiscal 2026, Under Armour has upped its guidance, and is now expecting revenue to decline around 4 percent, instead of the previously cited 4 to 5 percent drop. This includes an 8 percent decline in North America and 6 percent in Asia-Pacific, compared with a prior high-single-digit decline. The company expects this to be partially offset by a 9 percent increase in EMEA revenue.