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Under Armour Inc - Class C (UA)
NYSE:UA
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Under Armour
(NYSE:UA)
Rating:62Neutral
Price Target:―
Under Armour (UA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.91B
Dividend YieldN/A
Average Volume (3M)3.56M
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-7.47%
EPS Growth-131.70%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength57
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.08
Shares Outstanding202,847,600
10 Day Avg. Volume3,364,121
30 Day Avg. Volume3,560,333
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.93
Price to Sales (P/S)0.00
P/FCF Ratio-19.48
Enterprise Value/Market Cap1.60
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda7.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Under Armour Business Overview & Revenue Model
Company DescriptionUnder Armour, Inc. is a global leader in the design, development, and distribution of performance apparel, footwear, and accessories. Founded in 1996 and headquartered in Baltimore, Maryland, the company operates predominantly in the athletic apparel industry, catering to a wide range of sports and fitness activities. Under Armour is known for its innovative products that enhance athletic performance, including moisture-wicking fabrics, advanced footwear technology, and stylish sportswear.
How the Company Makes MoneyUnder Armour generates revenue primarily through the sale of its athletic apparel, footwear, and accessories. The company's revenue streams can be categorized into direct-to-consumer sales via its retail stores and e-commerce platforms, and wholesale distribution to retailers worldwide. Under Armour also benefits from strategic partnerships and sponsorship deals with athletes and sports teams, which enhance brand visibility and drive sales. Additionally, the company invests in marketing and product innovation to maintain competitiveness in the athletic apparel industry, contributing to its overall earnings.
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:
Main Street Data
Main Street DataUnder Armour Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q4-2025)
| % Change Since: 11.88%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, focusing on strategic restructuring and product innovation to regain market position. While there are significant achievements in gross margin improvements and EMEA performance, challenges remain, particularly in revenue declines across regions. The sentiment is cautiously optimistic but acknowledges the need for continued effort.Q4-2025 Updates
Positive Updates
Exceeded Fiscal '25 Outlook
Despite a decline in revenue, Under Armour exceeded its fiscal '25 outlook, demonstrating foundational traction as the brand is repositioned.
Gross Margin Improvement
The fourth quarter gross margin increased by 170 basis points year-over-year to 46.7%, driven by supply chain benefits and lower discounting.
Successful Restructuring Efforts
Under Armour recognized $89 million in restructuring charges and related transformation expenses, with expectations for total charges to remain within $140 million to $160 million.
Strong Performance in EMEA
EMEA remained flat on a currency-neutral basis and was the top-performing region for fiscal '25, showing strong partnerships and category focus.
Product Innovation and Brand Strategy
Introducing new collections like the SlipSpeed ECHO and the upcoming Halo collection, focusing on fewer, high-quality products to elevate the brand.
Negative Updates
Revenue Decline
The fourth quarter revenue was down 11% to $1.2 billion, with declines in key regions such as North America and APAC.
North American Market Challenges
North American revenue declined 11%, primarily due to a decrease in the DTC business and lower e-commerce sales.
Footwear Revenue Decline
Footwear revenue declined by 17%, partly due to ongoing proactive portfolio management efforts.
APAC Revenue Decrease
APAC revenue was down 27% or 26% when adjusted for currency fluctuations, primarily due to a competitive environment.
Company Guidance
During the fourth quarter of fiscal 2025, Under Armour exceeded its outlook, achieving a gross margin increase of 170 basis points to 46.7%, driven by 150 basis points from lower product and freight costs and 80 basis points from reduced discounting and promotions. Despite an 11% decline in revenue to $1.2 billion, the company exceeded or met its initial fiscal year outlook for every line item. North American revenue decreased by 11%, primarily due to lower e-commerce sales, while EMEA's revenue decreased by 2%, staying flat on a currency-neutral basis. APAC experienced a 27% decline in revenue due to a competitive environment, and Latin America's revenue fell by 10%, though it rose by 3% on a currency-neutral basis. Under Armour's SG&A expenses increased by 1% to $607 million in the quarter, with adjusted SG&A up 7% due to higher marketing and incentive compensation expenses. The company reported an operating loss of $72 million, with an adjusted operating loss of $36 million. Looking forward, Under Armour plans to navigate tariff challenges and expects first-quarter fiscal 2026 revenue to decline by 4% to 5%, with a gross margin expansion of 40 to 60 basis points and adjusted operating income of $20 million to $30 million.Under Armour Financial Statement Overview
Summary
Under Armour faces challenges with declining revenue, profitability, and cash flow in the latest period. Despite these issues, the company maintains a stable balance sheet with manageable leverage. Past performance shows potential for improvement if operational efficiencies and revenue growth can be achieved.Income Statement
Under Armour's TTM (Trailing-Twelve-Months) revenue has decreased significantly compared to the previous year. The company currently has a negative net profit margin and EBIT margin, indicating operational challenges. However, its gross profit margin remains positive, demonstrating some ability to manage cost of goods sold. In the past, the company showed positive EBIT and net income, reflecting potential for recovery if cost controls improve.65
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has slightly declined, indicating increased liabilities relative to assets. Historically, Under Armour has maintained a reasonable return on equity, although recent losses present a challenge to equity returns.70
Positive
Cash Flow
The TTM (Trailing-Twelve-Months) cash flow reveals negative free cash flow, reflecting cash management issues. Operating cash flow is low compared to net income, pointing to potential inefficiencies. Historically, the company has generated positive operating cash flow, suggesting the ability to recover cash flow performance.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.32B | 5.70B | 5.90B | 5.68B | 4.47B | 5.27B | Gross Profit |
| 2.52B | 2.63B | 2.64B | 2.86B | 2.16B | 2.47B | EBIT |
| -119.60M | 229.75M | 263.59M | 486.29M | -613.44M | 236.77M | EBITDA |
| 87.56M | 372.34M | 399.04M | 667.95M | 153.15M | 423.19M | Net Income Common Stockholders |
| -134.07M | 232.04M | 374.46M | 360.06M | -549.18M | 92.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 726.88M | 858.69M | 711.91M | 1.67B | 1.52B | 788.07M | Total Assets |
| 4.63B | 4.76B | 4.86B | 4.99B | 5.03B | 4.84B | Total Debt |
| 1.31B | 1.44B | 1.52B | 1.50B | 2.01B | 1.30B | Net Debt |
| 578.26M | 584.10M | 809.27M | -165.15M | 488.17M | 511.15M | Total Liabilities |
| 2.65B | 2.61B | 2.86B | 2.90B | 3.35B | 2.69B | Stockholders Equity |
| 1.98B | 2.15B | 2.00B | 2.09B | 1.68B | 2.15B |
| Cash Flow | Free Cash Flow | ||||
| -153.66M | 203.64M | -197.71M | 595.07M | 120.57M | 363.23M | Operating Cash Flow |
| 3.73M | 353.97M | -9.91M | 664.83M | 212.86M | 509.03M | Investing Cash Flow |
| -116.73M | -105.33M | -152.80M | -68.35M | 66.34M | -147.11M | Financing Cash Flow |
| -158.16M | -78.69M | -126.38M | -418.74M | 436.85M | -137.07M |
Under Armour Technical Analysis
Positive
6.59
Price Trends
5.89
Positive
6.17
Positive
7.10
Negative
Market Momentum
0.07
Positive
59.36
Neutral
30.87
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 6.59 is above the 20-day moving average (MA) of 6.29, above the 50-day MA of 5.89, and below the 200-day MA of 7.10, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.87 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 36 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.60B | 26.67 | 8.89% | 1.46% | 2.26% | -37.52% | |
71 Outperform | $3.53B | 15.56 | 56.32% | 3.27% | 1.19% | 3.19% | |
63 Neutral | $3.31B | 15.43 | 12.34% | 1.99% | -1.69% | -4.01% | |
62 Neutral | $6.76B | 11.06 | 2.80% | 6.66% | 2.68% | -24.89% | |
62 Neutral | $2.91B | ― | -9.95% | ― | -7.47% | -131.70% | |
53 Neutral | $4.56B | ― | -2.39% | 3.07% | -8.42% | 57.91% | |
50 Neutral | $1.57B | ― | -23.24% | ― | -33.72% | -892.32% |
* Consumer Cyclical Sector Average
Performance Comparison
UA
Under Armour
6.59
-0.36
-5.18%
COLM
Columbia Sportswear
60.39
-22.02
-26.72%
HBI
Hanesbrands
4.43
-0.74
-14.31%
VFC
VF
11.71
-2.69
-18.68%
KTB
Kontoor Brands
63.53
-2.47
-3.74%
ZGN
Ermenegildo Zegna
8.84
-2.91
-24.77%
Under Armour Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Under Armour Appoints New Board Members for Growth
Positive
Apr 15, 2025
On April 15, 2025, Under Armour announced the election of Dawn N. Fitzpatrick, Eugene D. Smith, and Robert J. Sweeney to its Board of Directors, with their roles effective immediately. The appointments are expected to strengthen Under Armour’s strategic direction, leveraging Fitzpatrick’s financial expertise, Smith’s sports management experience, and Sweeney’s retail investment background. These additions aim to enhance Under Armour’s value creation for athletes, customers, and shareholders, as the company continues to navigate its growth and market positioning.
Spark’s Take on UA Stock
According to Spark, TipRanks’ AI Analyst, UA is a Neutral.
Under Armour’s stock currently faces significant challenges, primarily due to declining financial performance and technical indicators pointing to a bearish trend. The improved outlook and strategic initiatives provide some optimism, but profitability issues and market competition weigh heavily on the stock’s attractiveness. The absence of a dividend yield and negative valuation metrics further contribute to a lower overall score.
To see Spark’s full report on UA stock, click here.
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.