Baltimore-based Under Armour is telling investors its turnaround "isn't over" even after another dip in sales and an expanded restructuring program that now stretches well into 2026. The company on Tuesday reported a weaker top line and a wider annual loss, while pledging that the extra work on its product, pricing and marketing is part of a broader reset meant to restore margins and win back consumers.
Restructuring program grows to roughly $305 million
The company said it has incurred $261 million in restructuring and transformation costs to date and is rolling out a targeted extension that brings total program costs to about $305 million, with the plan expected to be substantially complete by Dec. 31, 2026, according to Under Armour. In the fourth quarter alone, Under Armour recorded $36 million of restructuring-related charges and $128 million for the full year as it simplified assortments and pulled back promotional activity.
The numbers: sales, losses and a tax hit
For fiscal 2026, Under Armour's revenue declined about 4% to roughly $5.0 billion, and fourth-quarter revenue fell about 1% to roughly $1.17 billion, the company reported. The firm posted a GAAP net loss of $496 million for the year, which included a $247 million valuation allowance on certain U.S. deferred tax assets that dragged on the bottom line. "Our fiscal 2026 performance reflects the ongoing intentional steps we're taking to reset the business and restore the discipline required to operate as a best-in-class brand," CEO Kevin Plank said in the company's release.
Liquidity and the path ahead
Under Armour ended the quarter with $309 million in cash and $605 million in restricted investments designated for repayment of senior notes coming due in June 2026, and management laid out a fiscal 2027 outlook that calls for gross-margin improvement and higher adjusted operating income, per the company release distributed via PR Newswire. The company is guiding adjusted operating income of about $140 million to $160 million for fiscal 2027, and it said roughly 150 basis points of next-year margin improvement assumes reversals of certain tariff costs along with benefits from a cleaner product and channel mix. Executives said they will keep spending on marketing and product even as they work to complete the transformation.
What locals and analysts are watching
Local coverage highlighted the extension of the plan and the continued North American weakness, even as international markets showed pockets of growth, and framed management's comments as a pledge to keep grinding through the brand reset, according to Baltimore Business Journal. Investors and downtown suppliers will be watching whether the heavier near-term charges and tighter assortment really translate into the steadier top-line and margin gains Under Armour has forecast for fiscal 2027.
