Under Armour $UAA reported a net loss of $43.4 million for its fiscal fourth quarter, as revenue fell and tariffs compressed margins, the company said Tuesday.
Revenue for the three months ended March 31 declined 1% to $1.17 billion, with North America revenue down 7% to $640.9 million. International revenue rose 10% to $539 million, partially offsetting the domestic decline, the company said.
A combination of higher tariffs, elevated product costs, pricing headwinds, and an unfavorable regional mix pushed gross margin down 470 basis points to 42%, the company said. On an adjusted basis, the loss came to 3 cents per share.
Analysts had expected an adjusted loss of 2 cents per share and revenue of $1.167 billion, according to The Wall Street Journal.
The quarterly loss compared with a loss of $67.5 million, or 16 cents per share, in the same period a year earlier. For the full fiscal year, Under Armour posted a net loss of $495.6 million, which included a $247 million valuation allowance on U.S. federal deferred tax assets, the company said. Full-year revenue fell 4% to $5.0 billion.
Under Armour said it will extend its restructuring program through the end of 2026, increasing the total projected cost to about $305 million, up from the previous estimate of $255 million.
Looking ahead, Under Armour said it expects fiscal 2027 revenue to decline slightly year over year, with North America revenue falling at a low single-digit rate, partially offset by low single-digit growth in EMEA and Asia-Pacific. For the coming fiscal year, the company forecast adjusted earnings in a range of 8 to 12 cents per share, well short of the 23-cent consensus among analysts polled by The Wall Street Journal.
Baked into that outlook are a $70 million tailwind from anticipated tariff refunds, $35 million in costs tied to the conflict in the Middle East, and $30 million earmarked for stepped-up marketing spending, the company said.
"As our topline stabilizes in fiscal 2027, we are applying the same rigor that is strengthening our product engine to our storytelling capabilities," CEO Kevin Plank said in a statement. "Building world-class, modern marketing excellence is now our highest priority."
Under Armour stock fell in premarket trading Tuesday.