Under Armour Inc (NYSE:UA) slipped about 2% after the athletic apparel maker reported fiscal first quarter results that included an earnings beat but slightly weaker-than-expected revenue and a more cautious full-year outlook.
Under Armour reported adjusted diluted earnings per share of $0.05 for the quarter, ahead of the Wall Street consensus estimate of $0.02. Revenue fell 3% to $1.1 billion, slightly below the $1.11 billion analyst estimate.
North American revenue declined 9% to $610 million, while international revenue increased 5% to $490 million. Within international markets, revenue in EMEA increased 12%, while Asia-Pacific declined 7% and Latin America increased 8%.
Wholesale revenue declined 2% to $638 million, while direct-to-consumer revenue fell 6% to $437 million. Within DTC, owned-and-operated store revenue declined 3% and eCommerce revenue decreased 12%.
By category, apparel revenue declined 2% to $734 million, footwear revenue fell 8% to $245 million and accessories revenue decreased 4% to $96 million.
Under Armour lowered its fiscal 2027 revenue outlook, now expecting revenue to decline at a mid-single-digit percentage rate compared with its previous forecast for a slight decline. The company cited softer demand, particularly in North America and Asia-Pacific.
North American revenue is now expected to decline at a mid-single-digit rate, compared with the previous outlook for a low-single-digit decline. The company also now expects low-single-digit declines in Asia-Pacific and EMEA, compared with previous expectations for low-single-digit growth in both regions.
The company maintained its full-year operating income outlook of $96 million to $116 million and adjusted operating income outlook of $140 million to $160 million. Adjusted diluted earnings per share is still expected to range from $0.08 to $0.12.
“By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price,” Under Armour CEO Kevin Plank said in a statement.