Under Armour: 3 Key Takeaways for Long-Term Investors
Key Points
Second-quarter revenue declined 7% year over year to $1.2 billion.
Under Armour is targeting a 50% reduction in product SKUs.
Youth apparel is transitioning to a licensing model with Centric Brands.
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On its second-quarter fiscal 2027 earnings call, held on Nov. 6, 2026, Under Armour (NYSE:UAA) announced that revenue declined 7% to $1.2 billion while reiterating its full-year operating outlook. Management is reducing operating complexity and cutting low-volume inventory to protect profitability. Three things management said stand out.
1. Cutting Product Complexity to Drive Full-Price Sales
Management is trimming its product assortment to eliminate low-performing inventory. Reducing stock-keeping units (SKUs, or individual product codes) allows the business to lower costs and sell more goods without discounting.
We are simplifying our product line as well. Targeting a reduction of nearly 50% in SKUs from the level when I returned in 2024.
-- Kevin A. Plank, President and Chief Executive Officer
2. Licensing Youth Apparel Reduces Working Capital Requirements
Under Armour is moving its youth clothing line to a licensing partner, Centric Brands, to trim inventory exposure. This asset-light approach helps preserve cash while internal teams focus on core performance apparel.
An early example of this work is our decision to transition our youth apparel business to an expanded licensing model with Centric Brands, a long standing partner with deep children's product and retail expertise.
-- Kevin A. Plank, President and Chief Executive Officer
3. Monthly Global Launches Replace Fragmented Marketing
Management is centralizing marketing under one global voice and launching one primary product story each month. Aligning regional teams behind unified releases aims to boost marketing efficiency and drive full-price sell-through.
Also in marketing, starting with this month's Tech Helix launch, followed by the Armor Short in December, We plan to introduce 1 major product story each month throughout the calendar year.
-- Kevin A. Plank, President and Chief Executive Officer
Looking Ahead
Direct-to-consumer sales remain under pressure, but expense discipline is insulating operating margins. Under Armour relies on core strengths in football cleats and established apparel lines to support pricing discipline.
In closing, our second half priorities are clear. Improve inventory alignment, maintain expense discipline, preserve liquidity while supporting key launches.
-- Reza Taleghani, Chief Financial Officer
Long-term value depends on converting product innovation into full-price retail demand across global markets.
Our focus at Under Armour is to build a stronger brand through compelling products and more consistent execution.
-- Kevin A. Plank, President and Chief Executive Officer
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The Motley Fool recommends Under Armour. The Motley Fool has a disclosure policy.
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