The $3.4-trillion African Continental Free Trade Area (AfCFTA) presents immense opportunities to create resilient partnerships, diversify supply chains and move beyond raw material trade towards higher-value manufacturing and integrated value chains, he told a curtain raiser event for the forthcoming India-Africa Business Dialogue (IABD) and Exhibition.

Indian Commerce and Industry Minister Piyush Goyal yesterday called for aligning standards and customs procedures with Africa to boost trade.
The AfCFTA presents immense opportunities to move towards higher-value manufacturing and integrated value chains, he said.
Goyal said renewable energy, green hydrogen, green ammonia, electric mobility, digitalisation and telecom are key sectors to boost cooperation.

The minister “emphasised the need to build upon existing trade ties and preferential trade frameworks by aligning standards, customs procedures and business practices to facilitate faster and smarter growth for businesses on both sides”, the Ministry of Commerce said in a release.

Stressing that nearly two-thirds of the population of India and Africa is below 35, he called for greater focus on skilling, start-ups, innovation ecosystems and talent development to prepare the workforce for industries of the future.

Goyal said renewable energy, green hydrogen, green ammonia, electric mobility, digitalisation and telecommunications are key sectors to boost cooperation.

India-Africa trade reached $93.69 billion in fiscal 2025-26, seeing a 14.39-per cent growth year on year. India’s exports to Africa stood at $45.42 billion, while imports were worth $48.27 billion during the period.

Fibre2Fashion News Desk (DS)

Meanwhile, for fiscal 2027 (FY27), the company is now expecting revenue to decline slightly year-on-year (YoY), with a low single-digit decrease in North America partly offset by low single-digit growth in Europe, the Middle East and Africa (EMEA) and Asia-Pacific. Gross margin is expected to improve by 220 to 270 basis points.

For FY27, Under Armour expects slight revenue decline and margin improvement.
The company’s FY26 revenue fell 4 per cent to $5 billion, led by weaker North America sales, lower wholesale revenue, and a sharp footwear decline.
Gross margin narrowed due to tariffs and cost pressures.
In Q4, revenue slipped 1 per cent as North America weakened, though international and DTC sales grew.

“As our topline stabilises in fiscal 2027, we are applying the same rigour that is strengthening our product engine to our storytelling capabilities,” said Kevin Plank, president and CEO of Under Armour.

The company expects operating income of $96 million to $116 million. Adjusted operating income is projected at $140 million to $160 million, including an estimated $70 million benefit from assumed refunds related to prior-year International Emergency Economic Powers Act (IEEPA) tariff expenses, around $35 million in headwinds from the Middle East conflict, and about $30 million in incremental marketing investment, Under Armour said in a press release.

Diluted loss per share is expected to range from breakeven to $0.04, while adjusted diluted earnings per share (EPS) are forecast between $0.08 and $0.12.

Revenue declines as North America weighs on FY26

In FY26 ended March 31, the company has reported a 4 per cent decline in revenue to $5 billion.

“Our fiscal 2026 performance reflects the ongoing intentional steps we’re taking to reset the business and restore the discipline required to operate as a best-in-class brand,” added Plank.

He said as the company’s topline stabilises in FY27, Under Armour is applying the same rigour that is strengthening its product engine to its storytelling capabilities.

“Building world-class, modern marketing excellence is now our highest priority that we believe will accelerate consumer demand and help reshape Under Armour’s profit profile,” he said.

Regionally, North America revenue decreased 8 per cent to $2.9 billion, while international revenue grew 4 per cent to $2.1 billion. Within the international business, EMEA revenue increased 9 per cent, Asia-Pacific revenue declined 5 per cent, and Latin America revenue rose 9 per cent.

Wholesale revenue fell 5 per cent to $2.8 billion, while direct-to-consumer (DTC) revenue declined 2 per cent to $2.1 billion. Revenue from owned-and-operated stores increased 1 per cent, while e-commerce revenue decreased 7 per cent and accounted for 33 per cent of total DTC revenue for the year.

By category, apparel revenue decreased 2 per cent to $3.4 billion, footwear revenue declined 11 per cent to $1.1 billion, and accessories revenue increased 1 per cent to $414 million.

Gross margin decreased 240 basis points to 45.5 per cent, primarily due to higher tariffs, along with pricing pressure, higher product costs, and unfavourable channel and regional mix. These headwinds were partly offset by positive foreign currency impacts and favourable product mix. Adjusted gross margin declined 220 basis points to 45.7 per cent.

Q4 revenue slips as North America weakens

In the fourth quarter (Q4), Under Armour’s revenue decreased 1 per cent to $1.2 billion, or 4 per cent on a constant currency basis. North America revenue declined 7 per cent to $641 million, while international revenue increased 10 per cent to $539 million. Within international markets, Europe, Middle East and Asia’s (EMEA) revenue rose 7 per cent, Asia-Pacific grew 13 per cent, and Latin America increased 22 per cent.

Wholesale revenue fell 3 per cent to $748 million, while DTC revenue rose 5 per cent to $406 million. Owned-and-operated store revenue increased 8 per cent, while e-commerce revenue remained flat and represented 35 per cent of total DTC revenue during the quarter.

Under its FY25 restructuring plan, the company recorded $36 million in restructuring and transformation-related costs during the fourth quarter. To date, it has incurred $261 million in total restructuring and transformation costs. Under Armour is extending the plan, bringing total expected programme costs to around $305 million, with substantial completion expected by December 31, 2026, added the release.

Fibre2Fashion News Desk (SG)

On the Transpacific trade route, rates surged this week due to the implementation of Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS) by carriers. Freight rates from Shanghai to New York increased 14 per cent to $4,252 per 40-foot container, and those from Shanghai to Los Angeles rose 10 per cent to $3,357 per 40-foot container.

Drewry’s World Container Index rose 11.67 per cent to $2,553 per FEU in the week ending May 14, driven by higher freight rates on Transpacific and Asia–Europe routes.
Emergency fuel and peak-season surcharges, capacity cuts, blank sailings, and geopolitical tensions in the Middle East supported the rally, with rates expected to rise further in the coming weeks.

According to Drewry’s Container Capacity Insight, seven blank sailings have been announced on the Transpacific trade route for the next week, as carriers continue to manage capacity. In addition, Yang Ming Line announced a GRI of $2,000 per 40-foot container effective 15 May. Drewry expects rates to increase further in the coming week. 

On the Asia–Europe trade route, spot rates also increased this week due to FAK, along with capacity cuts announced by carriers in May. Rates from Shanghai to Genoa increased 20 per cent to $3,701 per 40-foot container, and those from Shanghai to Rotterdam jumped 11 per cent to $2,413 per 40-foot container. The Asia-Europe peak season is expected to start earlier than usual as higher cargo bookings, tight vessel space, and disruptions linked to the US/Israel-Iran conflict are prompting shippers to move cargo earlier. As demand is rebounding, Drewry expects rates to increase further in the coming week

Freight rates from New York to Rotterdam increased 1 per cent to $1,030 per FEU, while Rotterdam to New York decreased 3 per cent to $2,388 per FEU. Rotterdam-Shanghai rose 2 per cent to $644 per FEU, and Los Angeles–Shanghai steadied at $791 per 40-foot container.

Middle East tensions around the Strait of Hormuz and the Red Sea remain under close watch, with carriers staying cautious on routing and operations amid ongoing US/Israel-Iran conflict concerns. Meanwhile, higher bunker prices and tight vessel space continue to support freight rates. Carriers are also actively adjusting pricing through EFS, PSS, GRI and firmer FAK levels, alongside blank sailings, and flexible capacity management strategies, keeping the market firm despite relatively stable vessel movement.

Fibre2Fashion News Desk (KUL)