Want to see UA full AI Analyst Report?
Top Page
Under Armour
(NYSE:UA)
Select Model
Select Model
Rating:50Neutral
Price Target:
$6.50
▲(7.08% Upside)
Action:Reiterated
Date:07/07/26
The score is held down primarily by weak financial performance (sharp revenue declines, losses, and negative operating/free cash flow). Technicals are relatively supportive with improving momentum but show near-overbought signals. Guidance points to margin and profit improvement in FY27, but the top-line outlook remains slightly negative and transformation costs and North America weakness continue to be meaningful risks.
Positive Factors
Product simplification and assortment focus
Cutting SKUs 25% and shifting to category management reduces merchandising complexity, improves full-price sell-through and inventory turns, and makes replenishment and forecasting more predictable. Those structural changes should support steadier gross margins and lower working-capital needs over time.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow erodes liquidity and constrains the ability to fund marketing, product investment and transformation internally. Over months this forces reliance on revolver or restricted assets, raising financing risk and limiting reinvestment in growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Product simplification and assortment focus
Cutting SKUs 25% and shifting to category management reduces merchandising complexity, improves full-price sell-through and inventory turns, and makes replenishment and forecasting more predictable. Those structural changes should support steadier gross margins and lower working-capital needs over time.
Read all positive factors
Under Armour Key Performance Indicators (KPIs)
Any
Door Count
Indicates the number of retail locations, reflecting the company’s physical presence and potential market reach, as well as its strategy in brick-and-mortar retail.
Indicates the number of retail locations, reflecting the company’s physical presence and potential market reach, as well as its strategy in brick-and-mortar retail.
Data provided by:
The Fly
The FlyUnder Armour (UA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.86B
Dividend YieldN/A
Average Volume (3M)3.44M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-3.39%
EPS Growth-152.87%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-1.16
Shares Outstanding203,035,390
10 Day Avg. Volume2,593,050
30 Day Avg. Volume3,443,915
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.75
Price to Sales (P/S)0.50
P/FCF Ratio-15.23
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.75
Enterprise Value/Ebitda-45.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)$4.94B
Under Armour Business Overview & Revenue Model
Company Description
Under Armour, Inc., together with its affiliates, focuses on the creation, marketing, and distribution of advanced performance clothing, footwear, and accessories for male, female, and younger demographics. The company's apparel selection includes...
How the Company Makes Money
Under Armour primarily makes money by selling branded athletic products (apparel, footwear, and accessories) through two main commercial channels: (1) wholesale and (2) direct-to-consumer (DTC). In wholesale, UA sells products in bulk to third-par...
Under Armour Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: meaningful operational progress (SKU rationalization, inventory discipline, product innovations, leadership additions and international pockets of growth) and a credible plan to improve margins and discipline. However, results remain pressured with FY26 revenue and margin declines, a Q4 operating loss, elevated transformation costs (~$305M) and near-term revenue guidance that is flat-to-down. Management projects margin expansion and positive adjusted operating income in FY27, but top-line recovery is expected to be gradual and Q1 to represent a trough. Given the roughly even mix of tangible short-term challenges and constructive, actionable initiatives to restore profitability, the tone is cautious but constructive.Positive Updates
Product and Brand Momentum / Athletic Credibility
Secured high-profile athlete success (Sharon Lokedi's second consecutive Boston Marathon victory) used as proof point for performance positioning; launching premium product innovations (e.g., BANT / Velocity Pro/Velocity distance, NEOLAST recyclable stretch fiber T) and focusing on top 10 volume-driving items to premiumize assortment.
Negative Updates
Full-Year Revenue Decline
Fiscal 2026 revenue declined 4% to $5.0B, with North America down 8% and APAC down 5%, highlighting ongoing top-line pressure in the company's largest market.
Read all updates
Q4-2026 Updates
Positive
Negative
Product and Brand Momentum / Athletic Credibility
Secured high-profile athlete success (Sharon Lokedi's second consecutive Boston Marathon victory) used as proof point for performance positioning; launching premium product innovations (e.g., BANT / Velocity Pro/Velocity distance, NEOLAST recyclable stretch fiber T) and focusing on top 10 volume-driving items to premiumize assortment.
Read all positive updates
Company Guidance
Under Armour guided fiscal 2027 revenue to be down slightly vs. FY26 ($5.0B, -4% in FY26), with roughly low-single-digit declines in North America, low-single-digit growth in EMEA and APAC and a ~1-point headwind from the Curry exit; management expects FY27 gross margin to expand ~220–270 bps (about 150 bps of that from an IEEPA tariff refund recorded in FY26, with most refund impact in Q1), and Q1 gross margin to improve ~610–630 bps (≈600 bps from the refund). They forecast adjusted operating income of $140M–$160M and adjusted diluted EPS of $0.08–$0.12 for the year (the FY27 outlook assumes ≈$70M of tariff-refund benefit that offsets ~ $35M of Middle East conflict headwinds and about $30M of strategic marketing spend); Q1 adjusted operating income is guided to $30M–$40M with adjusted EPS roughly breakeven to $0.02. Adjusted SG&A is expected to increase low single‑digits (driven by ~2 points higher compensation and ~1 point higher marketing) while keeping marketing in the historical ~10–12% of revenue band; transformation costs are now expected to total ≈$305M (substantially complete by Dec 31). Additional end‑of‑year context: FY26 adjusted gross margin was 45.7%, adjusted operating income $107M, adjusted EPS $0.12; year-end inventory was $915M (-3% YoY), cash $309M plus $605M restricted, and ~$200M was drawn on the revolver (blended interest ≈6.5–6.6%).Under Armour Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
56
Neutral
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.97B | 5.17B | 5.69B | 5.86B | 5.69B |
| Gross Profit | 2.26B | 2.47B | 2.63B | 2.60B | 2.88B |
| EBITDA | -60.98M | -62.27M | 404.66M | 416.10M | 576.28M |
| Net Income | -495.64M | -201.27M | 232.04M | 374.46M | 360.06M |
Balance Sheet | |||||
| Total Assets | 4.42B | 4.30B | 4.76B | 4.83B | 4.45B |
| Cash, Cash Equivalents and Short-Term Investments | 309.17M | 501.36M | 858.69M | 710.93M | 1.01B |
| Total Debt | 1.94B | 1.30B | 1.44B | 1.52B | 1.48B |
| Total Liabilities | 3.00B | 2.41B | 2.61B | 2.86B | 2.72B |
| Stockholders Equity | 1.41B | 1.89B | 2.15B | 1.97B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | -162.16M | -228.00M | 203.64M | -197.71M | 595.07M |
| Operating Cash Flow | -75.09M | -59.32M | 353.97M | -9.91M | 664.83M |
| Investing Cash Flow | -688.81M | -126.35M | -105.33M | -152.80M | -68.35M |
| Financing Cash Flow | 560.63M | -180.81M | -78.69M | -126.38M | -418.74M |
Under Armour Technical Analysis
Positive
6.07
Price Trends
5.77
Positive
6.05
Positive
5.51
Positive
Market Momentum
0.25
Negative
64.58
Neutral
76.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Positive. The current price of 6.07 is below the 20-day moving average (MA) of 6.11, above the 50-day MA of 5.77, and above the 200-day MA of 5.51, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 76.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UA.
Under Armour Risk Analysis
Under Armour disclosed 35 risk factors in its most recent earnings report. Under Armour reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Under Armour Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.39B | 14.84 | 28.33% | 2.58% | 4.34% | 20.99% | |
70 Outperform | $3.22B | 20.23 | 10.26% | 2.18% | 0.54% | -19.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.66B | 23.37 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $6.58B | 25.97 | 15.92% | 1.95% | -0.72% | ― | |
50 Neutral | $2.86B | -5.70 | -30.13% | ― | -3.39% | -152.87% |
* Consumer Cyclical Sector Average
UA
Under Armour
6.61
0.05
0.76%
COLM
Columbia Sportswear
63.72
4.58
7.74%
PVH
PVH
77.78
5.56
7.70%
VFC
VF
16.88
4.89
40.78%
LEVI
Levi Strauss & Co
24.19
3.37
16.18%
Under Armour Corporate Events
Business Operations and StrategyFinancial Disclosures
Under Armour Expands Restructuring Plan Amid Ongoing Losses
Negative
May 12, 2026
Under Armour reported that for the fourth quarter of fiscal 2026, ended March 31, 2026, revenue slipped 1% to $1.2 billion, with weakness in North America offset by double-digit international growth, while gross margin contracted sharply on higher...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.