Under Armour Q1 FY27: $70M tariff refund lifts gross margin 590bp; operating income +1307%

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~2 min read

Key Changes

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  Supreme Court invalidated IEEPA tariffs; company received $101M cash refunds in Q1, recognizing $70M net COGS benefit from recovery of prior-period tariff costs. New Section 301 tariffs took effect July 24, 2026, with additional tariffs possible on major sourcing markets.

  Legal Proceedings & MD&A: Tariff Refunds verify on EDGAR →
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  Material weakness in balance sheet reconciliation controls remediated; disclosure controls now effective as of June 30, 2026, after multi-year remediation effort.

  Controls & Procedures verify on EDGAR →
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  Valuation allowance now covers all U.S. federal deferred tax assets (previously only interest expense carryforwards); net deferred tax assets fell 82% to $55M. Effective tax rate rose to 97.4% from 49.0%.

  Notes: Income Taxes verify on EDGAR →