Under Armour, Inc. has lowered its revenue outlook for fiscal year 2027 following reports of soft consumer demand [1, 2, 3, 4].
The adjustment signals a struggle to maintain momentum in key markets, particularly as the company faces weakened traffic trends and shifting consumer spending habits.
The company trimmed the forecast after reporting its first-quarter 2024 results [2, 4]. Management said weak demand in North America and the Asia-Pacific region were primary drivers for the revised projections [2, 4].
Financial data reveals a significant struggle in the U.S. market, where North America revenue declined by nine% [5]. This domestic slump was mirrored in the company's sales channels. Direct-to-consumer sales fell by six% [5], while wholesale revenue saw a decrease of two% [5].
Performance outside of North America provided a partial offset. International sales grew by five% [5], with the Europe, Middle East, and Africa (EMEA) region showing the strongest momentum with a 12% increase [5].
Despite the growth in EMEA, the overall downward trend in North America, the company's largest market, prompted the lower annual guidance. The company continues to navigate a volatile retail environment where consumer traffic has slowed [2, 4].
“Under Armour, Inc. has lowered its revenue outlook for fiscal year 2027”
The revenue cut highlights a growing divergence between Under Armour's domestic and international performance. While the company is finding success in the EMEA region, the decline in North American direct-to-consumer and wholesale channels suggests a loss of brand heat or pricing pressure in its home market. The lowered FY27 outlook indicates that leadership does not expect a rapid recovery in consumer traffic in the near term.
