US-based sportswear retailer Under Armour reported a 4% revenue decline to $1.1bn in Q1 FY26. North American revenue dropped 5% to $670m, while international revenue fell 1% to $467m. Gross margin improved to 48.2%, attributed to various factors. Direct-to-consumer revenue decreased by 3% to $463m, with e-commerce revenue down 12%.

Apparel revenue slightly decreased to $747m, footwear revenue saw a significant 14% drop, and accessories revenue grew 8% to $100m. Operating income was $3m, with a net loss of $3m. The company’s restructuring plan, announced in 2024, is estimated to cost $140-160m. Q2 FY26 revenue is expected to decline by 6-7%.

Under Armour anticipates a low-double-digit percent revenue decrease in North America and a low-teens percent decline in the Asia-Pacific region in Q2 FY26. Gross margin is projected to decline between 340 and 360 basis points due to supply chain challenges. Operating income could see a loss of up to $10m. Diluted loss per share is expected to range from $0.07 to $0.08.

Read more at Yahoo Finance: Under Armour expects revenue drop in Q2 FY26 after Q1 loss