Under Armour Revenue Falls 6.9% to $1.24B as Wholesale Slips

Under Armour posted $1.24 billion in fiscal second-quarter net revenue, down 6.9% year over year for the quarter ended Sept. 30 — and CEO Kevin Plank framed the decline as proof the turnaround is on script.

"We delivered against our revenue expectation and exceeded our operating income outlook," Plank said in the earnings announcement. "As we progress in this transformation, we are driving greater efficiency across our business, sharpening our product offering, and amplifying global marketing to strengthen our brand and improve financial performance."

The quarter also carried restructuring costs. Under Armour booked $13 million in Q2 charges under its Fiscal 2025 Restructuring Plan, which the company expects to be "substantially complete" by the end of 2026. Put that in context: restructuring alone consumed roughly 1% of quarterly revenue.

The full-year picture is no brighter. Under Armour guided to a full fiscal-year revenue decline "at a mid-single-digit percentage rate" — meaning the slide is expected to continue, not stabilize, through the rest of the fiscal year.

Where the revenue actually leaked

The channel mix tells the sharper story. Plank, speaking to investors on the earnings call, broke down the numbers plainly:

• Wholesale revenue fell 6% to $725 million, which he attributed to "softer full-price sell-through and pressure in parts of the distributor business, partly offset by select accounts and markets."
• Direct-to-consumer revenue fell 8% to $494 million, including a 7% decline in owned and operated stores.
• Ecommerce declined 12% — the steepest drop of any channel.

That ecommerce figure matters. Under Armour ranks No. 158 in the Top 1000 Database of North America's largest online retailers, ranked by annual ecommerce sales. It also sits at No. 285 in the AI Commerce Rankings from Digital Commerce 360 and ReFiBuy. A 12% online decline against that ranking suggests share erosion in digital precisely where the company's scale should anchor it.

For distributors, the wholesale line is the one to watch. Plank's own words — "pressure in parts of the distributor business" — signal that full-price sell-through weakness is being felt upstream, not just at Under Armour's own registers. Select accounts and markets offset some of it, but not enough to hold the line.

What is driving the declines?

Plank did not blame pricing or product mix. He blamed footfall.

"Traffic remained the primary challenge, particularly in North America, with better conversion and targeted digital initiatives providing some offset," he stated.

Read that mechanism carefully. Conversion improved. Digital targeting worked. But fewer shoppers walked in — or clicked in — and volume losses swamped the gains in shopper quality. That is a demand-generation problem, which helps explain why marketing sits near the top of management's fix list.

How does Plank expect AI to help?

On the Nov. 6 earnings call, Plank made his most forward-leaning case yet that artificial intelligence maps directly onto the apparel industry's economics.

"I think that our industry actually lines and maps up perfectly for the advantage of what AI brings for us," he stated.

He named three priority areas:

• Supply chain
• Merchandising
• Marketing

Each targets a specific cost of doing business. Supply chain touches inventory turns and fulfillment. Merchandising touches assortment accuracy — fewer markdowns, better full-price sell-through. Marketing touches the traffic problem directly.

Plank, though, did not let AI enthusiasm paper over the basics. Asked what Under Armour ultimately needs from partners, his answer was blunt: "ship us everything that we ordered." He added that "accuracy and delivering on time and full is also a priority."

That is a direct message to the supplier and logistics side of the chain. On-time, in-full delivery — OTIF in industry shorthand — remains the non-negotiable foundation before any AI-driven optimization pays off. A 6% wholesale decline partly traced to distributor pressure makes fill-rate discipline a margin issue, not just an operations metric.

What comes next

The measurable facts: revenue down 6.9%, ecommerce down 12%, wholesale down 6%, $13 million in restructuring charges, and a mid-single-digit full-year decline guided. The asserted part: that AI across supply chain, merchandising and marketing can bend those curves. Plank has until the restructuring plan's end-2026 completion date to show the mechanism working in the numbers.