The comeback story at Under Armour continues to be a grueling, uphill battle. Founder-CEO Kevin Plank is trying to steer the ship back to its “performance-first” roots, but as the company’s Q2 2026 results (reported on November 6, 2025) show, the turnaround is being hit by severe external headwinds.
The report was a mixed bag of painful, but expected, numbers. While revenue of $1.33 billion and an EPS of 4 cents both beat Wall Street’s low expectations, the bigger picture remains challenging. Total revenue declined 5% year-over-year. The all-important North American market, the brand’s home turf, fell by 8%, and its footwear division plunged a massive 16%. Even its e-commerce business was down 8%.
In the earnings call, Plank remained disciplined, highlighting “signs of brand momentum in North America” as a key milestone. But the company was forced to lower its full-year outlook, citing a major, unavoidable problem: higher U.S. tariffs. These tariffs are squeezing its gross margin—which contracted by 250 basis points—and creating a “profit pinch” that complicates its recovery.
This is the central tension for Under Armour in late 2025. Plank is trying to execute a long-term “Protect This House” turnaround, which he outlined in August. This plan involves “shrinking the battlefield” to focus on “less things better,” improving product quality, and using “sharper storytelling” to win back the 16-to-24-year-old team sports athlete. This strategy is about rebuilding brand loyalty and “reclaiming shelf space” from its wholesale partners—a slow, methodical process.
However, this long-term brand-building exercise is colliding with a short-term financial reality. The 16% drop in footwear is a massive red flag, indicating that its shoes are not resonating with consumers in a crowded market. The 8% drop in North America shows that competitors are continuing to eat its lunch at home.
There are, however, bright spots. The international business is growing, with EMEA (Europe, Middle East, and Africa) up 12% and Latin America up 15%. This proves the brand still has power and room to grow outside its struggling home market.
Plank’s strategy remains the only viable path forward. He is trying to restore the brand’s premium positioning, which means less discounting and walking away from “bad” revenue. The Q2 2026 results show this is a painful, non-linear process. Under Armour is a company in the trenches, fighting a two-front war: one against its own past identity to win back consumer trust, and another against macroeconomic forces like tariffs that are beyond its control.
