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Under Armour Goes All-In On A 25% SKU Reduction — Can Demand Follow?

Under Armour, Inc. reported its first quarter fiscal 2027 results with a 3% decline in revenue to $1.1 billion amid softer-than-anticipated consumer demand, particularly in North America and Asia Pacific. The company faced headwinds in its wholesale and direct-to-consumer (DTC) channels, with North American revenue down 9%, reflecting weaker spring/summer orders and traffic, while e-commerce saw a 12% decrease. In contrast, EMEA and Latin America showed resilience, with EMEA revenue up 12% and Latin America increasing 8% (1% on a constant currency basis). Asia Pacific revenue declined 7%, impacted by softness in China and Southeast Asia, exacerbated by stock-outs and aggressive discounting by licensees. Apparel sales decreased 2%, with declines in most sport categories offset by gains in sportswear. Footwear revenue fell 8% due to demand softness and product assortment optimization, though outdoor and golf segments posted growth while running was flat.