Under Armour falls to £110m loss in Q3 amid higher costs

Under Armour reported an operating loss of $150m (£110.2m) for the third quarter as significant one-off charges and higher tariff costs outweighed international sales growth.

The Baltimore-based group now expects its annual operating loss to widen to $154m (£113.1m) for FY26, up from a previous estimate of $56m to $71m (£41.2m to £52.2m). 

It comes as the quarterly results were heavily impacted by a $99m (£72.7m) litigation reserve and $75m (£55.1m) in restructuring charges.

Revenues for the period ended 31 December 2025 fell 5% to $1.33bn (£977.2m). North American sales remained a primary drag on performance, falling by 10% to $757m (£556.2m), while international markets grew 3% to $577m (£424m).

The company said it is currently executing a multi-year restructuring plan intended to streamline product lines and improve efficiency. Total costs for the programme are now estimated at $255m (£187.4m), with $224m (£164.6m) already incurred by the end of the third quarter.

Despite the statutory loss, adjusted operating income reached $26m (£19.1m) for the quarter. The company also raised its annual adjusted operating income outlook to $110m (£80.8m), citing better-than-expected progress in its business reset.

Under Armour president and CEO, Kevin Plank, said: “Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum. In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.

“Our transformation is accelerating as we sharpen our focus and strengthen execution. Our strategy is gaining traction through better products, bolder storytelling, and a more disciplined market presence, positioning Under Armour to operate with greater intention and confidence going forward.”