• For the fourth quarter, revenue came in at $1.2 billion, while adjusted loss was $0.03 per share.
• Gross margins took a 470-basis-point hit in the quarter to 42%, down from 46.7% last year.
• For fiscal 2027, the firm expects sales to “decline slightly” and diluted loss per share to range from breakeven to $0.04.

Sportswear company Under Armour (UA, UAA) flagged slowing sales in its key market going into the new fiscal year and reported a weak fourth quarter, causing its shares to tank in premarket trading on Tuesday.

At the time of writing, the company's Class A shares were down more than 15% and on track to open at a five-month low.

UAA’s Weak Q4 Print

Under Armour saw a 7% decline in North American sales in the fourth quarter (Q4), offsetting the 10% growth in international markets, as it continues to face fierce competition from global rivals like Nike, Adidas, and Puma, as well as up-and-coming brands like Hoka and On.

Adding to the company’s woes were higher tariffs and product costs, pricing headwinds, and an unfavorable regional mix, among other factors, which hurt gross margins by 470 basis points to 42%, down from 46.7% last year.

For the fourth quarter (Q4), revenue fell 1% to $1.2 billion, in line with the Fiscal AI estimate. The firm reported an adjusted loss of $0.03 per share, wider than the estimated loss of $0.02 per share.

For fiscal 2027, Under Armour said sales will “decline slightly,” with a low single-digit decrease in North America partially offset by low single-digit growth in EMEA and Asia-Pacific. Diluted loss per share is expected to range from breakeven to $0.04, significantly below the $1.14 estimate.

What Does Retail Think About UAA Stock?

On Stocktwits, many users expressed frustration with the company’s earnings report.

UAA stock has gained over 21% so far this year, but has fallen more than 2% over the past 12 months.

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