Under Armour Footwear Falls 11% as Plank Bets on Spring '27 Reset

Under Armour's footwear revenue fell 11 percent to $234 million in the second quarter ended Sept. 30, a decline founder and CEO Kevin Plank insists masks a $1 billion business that "can be much larger."

Plank told investors on Friday's earnings call: "And we think you're going to see a lot more of that proof coming through in spring '27." That date is now the operational deadline for a reset built on fewer franchises, compressed calendars and supply chain changes. Given past underperformance, Wall Street is asking whether the plan holds.

What is the reset built on?

Company revenue fell 7 percent to $1.2 billion, though that beat Wall Street expectations of an 8.3 percent decline. Plank, who returned to the top job, is betting on a simpler leadership structure and concentrated resources.

"We're concentrating resources where our performance credibility gives us the strongest opportunity to win," he said. "Our leaders are then responsible for translating those actions and the product athletes choose."

The cleated American football business offers the template. It grew double digits in the quarter, with higher average selling prices and market share gains. Under Armour is now the No. 2 brand in U.S. football cleats. One proof point, but a narrow one. Cleated strength and running could not offset broader category weakness, noted BTIG analyst Robert Drbul.

What changes for vendors?

Sourcing partners have direct implications. Under Armour held its supplier summit last week and is working with "key manufacturing partners on shorter lead times, more efficient use of materials and faster response," Plank said.

AI (artificial intelligence tools applied to product development calendars) is part of the plan. "We see opportunities for AI to speed decisions and reduce repetitive work, so our teams can spend more time developing products and serving athletes," the CEO said. No timeline or vendor cost-sharing was disclosed.

Running anchors the performance story. Marathoner Sharon Lokedi finished second at last month's Chicago Marathon in the Velociti Lead 3, improving her personal best by more than 3 minutes to become the eighth fastest female marathoner in history. Plank cited the result as proof of footwear credibility at the elite level, but commercial execution is the open question.

How does pricing shift?

The Velociti franchise will broaden its assortment with iterations "at more accessible price points this coming spring." That is a deliberate segmentation play: the flagship stays, cheaper versions extend reach. Marketing spend will consolidate into fewer, bigger campaigns, while regional teams work local media.

"We have a brand that is much bigger than our business," Plank said. He conceded the company has not done a good enough job extracting value from footwear. The fix, he argued, is a "clear point of view on what we want consumers to buy and then telling them why to buy it."

What do the analysts say?

Drbul framed the core issue directly. Product remains the focus, but whether Under Armour can translate innovation into broader demand is the key question. "We continue to believe the production simplification and increased focus on innovation are steps in the right direction, but sustained improvement will ultimately require these initiatives to translate into better traffic and broader full-price demand," he concluded.

Jefferies analyst Randal Konik flagged the inventory problem. Inventory rose 4 percent against revenue down 7 percent, and product pipeline evidence amounts only to "early proof points." Management is cutting future buys and taking sell-through actions. The required markdowns will weigh on second-half margins, reinforcing the need for better demand planning, Konik said.

The backdrop sharpens the skepticism. Before the first quarter report in August, Wall Street hoped the Baltimore, Md.-based firm stood at the edge of its long-awaited turnaround. Two days after those results and a revised outlook, consumer demand still looked like the constraint.

Plank's spring '27 promise now carries the burden of proof. Until footwear demand broadens beyond cleats and elite marathon podiums, the reset remains an intention with a calendar, not a measured result.