ts the ongoing steps it is taking to reset the brand and restore the discipline required to operate as a best-in-class brand. “As our topline stabilizes in fiscal 2027, we are applying the same rigor that is strengthening our product engine to our storytelling capabilities,” he said. “Building world-class, modern marketing excellence is now our highest priority, which we believe will accelerate consumer demand and help reshape Under Armour’s profit profile.” What Under Armour’s Q4 results reveal about the state of the brand’s revival strategy Neil Saunders, managing director at GlobalData, told Inside Retail, “This is a rather mixed set of results from Under Armour that shows modest signs of progress, albeit with some very big caveats.” Saunders noted that the report showed that at least the brand’s sales seem to finally be stabilizing, with total revenue down by just 0.8 per cent from where it was this time last year. However, he noted that while this quarter marks the best quarterly performance Under Armour has had in over two years, it comes off the back of a very sharp decline in the prior year. On a divisional and geographical basis, Saunders noted that performance remains uneven. In the critical North American market, sales declined by 7 per cent, well below the prevailing growth rate for sporting goods and underscoring that Under Armour is still losing significant market share. “Admittedly, some of this is an engineered pullback as Under Armour tries to become more disciplined with its distribution – but this is not the only reason for the ongoing decline. In our customer affinity data, Under Armour has shown only very modest improvement in the US and remains significantly below many other brands. Many consumers remain confused and somewhat nonplussed with the brand.” Saunders noted that, comparably, Under Armour holds more favor with its international clientele, as can be seen in sales growth in EMEA (7.1 per cent), Asia-Pacific (12.7 per cent), and LATAM (22.4 per cent) in the last quarter. However, this rise in international sales was partially due to favorable exchange rates versus a major spike in product push-through. “On a constant currency basis, overall international growth came in at a modest three per cent,” said Saunders. “This isn’t terrible and it reflects the higher regard with which the Under Armour brand is held overseas, but it isn’t powerful enough to completely offset the ongoing decline in North America.” Can Under Armour make a comeback? As retail strategist Christine Russo, principal of RCCA, told Inside Retail, Under Armour has its work cut out for it if there is any hope for a brand revival. “Under Armour is suffering from several major issues, but where to start to turn the ship around. The issues include the loss of Steph Curry as a brand ambassador, notable revenue decline, severe margin pressure, and external pressures like tariffs.” While some may theorize that maintaining top-line revenue should be Under Armour’s main point of focus, Russo contends that the brand needs to prioritize its margins first. “Several strategic positions are contributing to their margin issues. First is markdowns; they are not selling through the product, so they have to markdown. Second, they have chosen the outlet division as their main brick-and-mortar strategy, which is heavily costing them. While they are building margins for off-price, this reduces the quality and certainly the brand equity.” Echoing Russo’s commentary, Saunders noted that he and the GlobalData team remain doubtful of the American sportswear giant’s ability to pull itself up by its jogger drawstrings. “Putting all of this together, we don’t believe there is sufficient evidence to say there is a sustainable recovery at Under Armour. This is especially so as the company remains loss-making and gross margins are still pressured – something that should not be the case if weaker sales channels and product lines are being cut,” said Saunders. He also noted that the company’s outlook reflects this view, with revenue expected to decline slightly year-over-year, including a low single-digit decrease in North America. While the deterioration might be gentler in the next few quarters, it still signifies shaky ground for the brand’s comeback potential. “It ties back to the fact that Under Armour has still not found its groove in terms of brand positioning or having truly innovative and interesting products that stand out from rivals,” concluded Saunders. Further reading: Under Armour sees ‘modest signs of progress’ in mixed Q4 results