Under Armour's first quarter revenue missed estimates while gross margins significantly expanded to 54.1%

Under Armour reported first quarter fiscal 2027 revenue of $1.1 billion, missing the $1.21 billion analyst consensus as the company navigates a difficult demand environment. Despite the top-line pressure, adjusted EPS of $0.05 exceeded the $0.02 estimate, buoyed by one-time benefits and disciplined expense management.

Key Highlights

• Gross margin expanded 590 basis points to 54.1%, primarily driven by $70 million in refunds related to previously expensed tariff costs.
• North American revenue fell 9% to $610 million, leading the company to lower its full-year fiscal 2027 revenue outlook to a mid-single-digit decline.
• Inventory levels improved slightly, decreasing 3% to $1.1 billion, while the company maintains a fiscal 2025 restructuring plan with total anticipated costs of $305 million.