Key facts
- Under Armour now expects annual gross margin to rise 170 to 220 basis points, down from a prior 220 to 270 basis points.
- The company forecast a roughly $45 million operating income hit from the Middle East conflict, up from $35 million.
- Quarterly revenue fell about 7% to $1.24 billion, above the LSEG-compiled estimate of $1.23 billion.
- Adjusted earnings were breakeven versus an estimated 1-cent loss per share.
- North America net revenue fell about 7% to $737.2 million in the quarter ended September 30.
Under Armour warned on November 6, 2026 that the Middle East conflict would take a bigger bite out of operating income and lowered its annual gross margin growth forecast, sending the shares down about 12% in premarket trading.
The athletic apparel maker said it expects a roughly $45 million impact from the Middle East conflict, up from a prior view of $35 million. It now expects annual gross margin to increase 170 to 220 basis points, slower than its earlier forecast of a 220 to 270 basis-point improvement. A basis point is one hundredth of a percentage point.
For the quarter ended September 30, revenue fell about 7% to $1.24 billion, slightly above analysts' average estimate of $1.23 billion compiled by LSEG. Adjusted earnings were breakeven, against estimates of a 1-cent loss per share. Net revenue in North America, a major contributor, fell about 7% to $737.2 million.
Under Armour said it expects higher prices and refunds from IEEPA tariff expenses to help support margins in fiscal 2027. Reuters reported that the company joins others across industries anticipating higher transportation and supply-chain costs tied to an oil price rise the report links to the Iran war.