Under Armour, Inc. Annual Report - How They Did This Year (FY 2026)

Hey there! Let’s look at Under Armour’s latest report for the year ending March 31, 2026.

If you buy their stock, note the two share types: Class A (UAA, one vote) and Class C (UA, no votes). Founder Kevin Plank owns all Class B shares. With 10 votes per share, he has total control over all major decisions.

1. What does this company do and how do they make money?

The company made $4.97 billion in sales but lost $495.6 million. Apparel makes up 68% of sales, footwear 22%, accessories 8%, and licensing 2%.

They sell through wholesale partners (57%) and directly to consumers (41%) via 443 stores. They own no factories. Just 17 outside suppliers make almost all their gear. North America brings in 58% of sales.

2. Financial performance - revenue, profit, growth metrics

Sales fell 3.6% to $4.97 billion. Footwear sales plunged 10.8%, and North American sales dropped 7.9%. Profit margins shrank to 45.5% due to tariffs and discounting.

To help, they cut operating costs by 11.8%. Still, tax charges and restructuring costs drove their final loss up to $495.6 million. Over five years, a $100 investment shrank to $34.40, lagging far behind competitors.

3. Major wins and challenges this year

On the plus side, they fixed their past bookkeeping weaknesses and avoided asset write-downs.

However, restructuring costs doubled to $127.7 million. This includes $82.9 million to separate the Stephen Curry brand and $15.9 million to close a California warehouse. They are also spending heavily on a new Baltimore headquarters.

4. Financial health - cash, debt, liquidity

Cash fell to $309.2 million because they burned $75.1 million running the business and spent $688.8 million on investments. To get cash, they issued $400 million in new debt at a high 7.25% interest rate.

They set aside $605.4 million in a trust to pay off older debt due in June 2026. Inventory fell 3.3% to $914.8 million. They do not pay dividends and paused share buybacks. If they sell more stock to raise cash, it could reduce your ownership percentage.

5. Key risks that could hurt the stock price

Sales numbers rely on unpredictable estimates of future returns and discounts. Other risks include cyberattacks, lawsuits, and seasonal sales drops.

They face currency swings, though they use protective contracts. They also lack long-term retail contracts, rely on just two US warehouses, and face rising sponsorship costs.

6. Competitive positioning

They face giants like Nike and Lululemon. Under Armour does not own its fabric patents, so rivals can copy their tech. They must spend heavily on digital tools and fight for retail shelf space.

7. Leadership or strategy changes

Founder Kevin Plank returned as CEO in April 2024. In early 2026, they hired a new financial chief, marketing chief, and other key leaders. This new team brings fresh energy but also transition risks.

8. Future Outlook

They expect to finish restructuring by December 2026, costing $305 million total. Current cash should fund them for 12 months. They have locked in currency contracts through 2028 and set aside funds for their 2026 debt. However, forecasting tariff costs remains difficult.

9. Market trends or regulatory changes affecting them

New global tax rules make future tax bills hard to predict. Strict privacy laws raise costs, and unstable tariffs make import costs volatile. Rising material prices, sustainability demands, and shipping delays also threaten profit margins.

10. The Bottom Line for Investors

Under Armour is in the middle of a major turnaround. With founder Kevin Plank back at the helm, a fresh leadership team, and a heavy focus on restructuring, the company is actively working to streamline its operations and cut costs. However, with falling sales, a significant net loss, and new high-interest debt, it remains a high-risk, high-reward play. If you're considering investing, keep a close eye on how their restructuring wraps up by late 2026 and whether their new product and marketing strategies can win back market share from giants like Nike and Lululemon.