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Under Armour
(NYSE:UA)
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Rating:44Neutral
Price Target:
$5.00
▼(-27.11% Downside)
Action:Reiterated
Date:08/07/26
The score is held down primarily by weak financial performance (large TTM losses, negative ROE, and negative free cash flow). The earnings call provides some support through maintained profitability guidance and margin improvement, but that is tempered by a lowered revenue outlook and reliance on tariff-related gross margin benefits. Technicals suggest oversold conditions and possible stabilization, while valuation remains constrained by negative earnings and no dividend yield.
Positive Factors
Cost discipline supports profitability
Maintaining operating-income guidance despite weaker revenue indicates stronger cost control and operating discipline. If sustained, these actions can protect profitability and improve operating leverage while the company works to restore demand.
Negative Factors
Persistent revenue contraction
Lowered full-year guidance and another expected high-single-digit Q2 decline indicate that demand weakness is broader than a single quarter. Sustained top-line pressure can limit scale benefits and make the turnaround dependent on further cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost discipline supports profitability
Maintaining operating-income guidance despite weaker revenue indicates stronger cost control and operating discipline. If sustained, these actions can protect profitability and improve operating leverage while the company works to restore demand.
Read all positive factors
Under Armour Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business segments, highlighting which areas drive earnings and where there may be challenges or opportunities for growth.
Reveals profitability across different business segments, highlighting which areas drive earnings and where there may be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyUnder Armour (UA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.28B
Dividend YieldN/A
Average Volume (3M)3.37M
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-3.23%
EPS Growth-595.55%
CountryUS
Employees14,100
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-1.15
Shares Outstanding206,256,040
10 Day Avg. Volume2,552,002
30 Day Avg. Volume3,374,534
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)$4.74B
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:Aug 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call portrayed clear operational progress — cost discipline, SKU rationalization, stronger gross margin performance and product wins (e.g., Bouncy Tee) — but also substantive top-line challenges: softer consumer demand, promotional pressures, regional softness in North America and China, and pressure in DTC/e-commerce and footwear. Management preserved full-year profitability guidance through aggressive expense and inventory control and restructuring savings, while lowering revenue expectations. Overall the tone was one of cautious optimism: execution and efficiency gains are evident, but revenue recovery is uncertain and will require converting product credibility into sustained consumer demand.Positive Updates
Adjusted Operating Income Outperformance and Profitability Control
Adjusted operating income of $52 million in Q1 exceeded the outlook of $30–$40 million; full-year adjusted operating income guidance maintained at $140–$160 million despite a lowered revenue outlook, reflecting tight cost management and operational discipline.
Negative Updates
Top-Line Pressure and Lowered Revenue Outlook
Q1 revenue declined 3% to $1.1 billion and management lowered fiscal 2027 revenue guidance to a mid-single-digit decline for the year; Q2 revenue expected to decline at a high single-digit rate.
Read all updates
Q1-2027 Updates
Positive
Negative
Adjusted Operating Income Outperformance and Profitability Control
Adjusted operating income of $52 million in Q1 exceeded the outlook of $30–$40 million; full-year adjusted operating income guidance maintained at $140–$160 million despite a lowered revenue outlook, reflecting tight cost management and operational discipline.
Read all positive updates
Company Guidance
Under Armour updated fiscal 2027 guidance: full‑year revenue is now expected to decline mid‑single‑digits (North America down mid‑single‑digits, EMEA down low‑single‑digits, Asia‑Pacific down low‑single‑digits) while management is maintaining adjusted operating income of $140–$160 million; they expect full‑year gross margin expansion of ~220–270 basis points versus last year (including ~150 bps of IEEPA tariff benefit) and now forecast adjusted SG&A to decline at a low single‑digit rate. For Q2 the company expects revenue down high‑single‑digits (high‑single‑digit North America & APAC, low‑double‑digit EMEA), adjusted operating income of $10–$20 million and an adjusted diluted loss per share of $0.01–$0.03. Context and related metrics cited on the call include Q1 revenue of $1.1 billion (‑3% YoY), Q1 adjusted operating income $52 million (vs prior outlook $30–$40M), Q1 gross margin 54.1% (+590 bps YoY), Q1 adjusted diluted EPS $0.05, inventory $1.1 billion (‑3% YoY), cash $396 million, $200 million outstanding on the revolver, anticipated total restructuring/transformation costs of ~$305 million (≈$266M incurred to date: $116M cash/$150M non‑cash), and SKU reduction targets of a further 25% over the next 18 months (roughly ~40%+ overall by end of ’28); the company also reiterated a roughly 10% tariff assumption for the period and expects to be free cash flow positive this year.Under Armour Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
42
Neutral
Cash Flow
20
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.95B | 4.97B | 5.17B | 5.69B | 5.86B | 5.69B |
| Gross Profit | 2.32B | 2.26B | 2.47B | 2.63B | 2.60B | 2.88B |
| EBITDA | -75.22M | -60.98M | -62.27M | 404.66M | 416.10M | 576.28M |
| Net Income | -492.49M | -495.64M | -201.27M | 232.04M | 374.46M | 360.06M |
Balance Sheet | ||||||
| Total Assets | 4.10B | 4.42B | 4.30B | 4.76B | 4.83B | 4.45B |
| Cash, Cash Equivalents and Short-Term Investments | 395.98M | 309.17M | 501.36M | 858.69M | 710.93M | 1.01B |
| Total Debt | 1.38B | 1.94B | 1.30B | 1.44B | 1.52B | 1.48B |
| Total Liabilities | 2.67B | 3.00B | 2.41B | 2.61B | 2.86B | 2.72B |
| Stockholders Equity | 1.43B | 1.41B | 1.89B | 2.15B | 1.97B | 1.73B |
Cash Flow | ||||||
| Free Cash Flow | -81.12M | -162.16M | -228.00M | 203.64M | -197.71M | 595.07M |
| Operating Cash Flow | -14.80M | -75.09M | -59.32M | 353.97M | -9.91M | 664.83M |
| Investing Cash Flow | -68.05M | -688.81M | -126.35M | -105.33M | -152.80M | -68.35M |
| Financing Cash Flow | -433.74M | 560.63M | -180.81M | -78.69M | -126.38M | -418.74M |
Under Armour Technical Analysis
Negative
6.86
Price Trends
6.14
Negative
5.95
Negative
5.75
Negative
Market Momentum
-0.37
Positive
31.77
Neutral
46.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Negative. The current price of 6.86 is above the 20-day moving average (MA) of 5.73, above the 50-day MA of 6.14, and above the 200-day MA of 5.75, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 31.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $8.36B | 13.33 | 28.66% | 2.36% | 4.34% | 20.99% | |
67 Neutral | $3.08B | 15.56 | 12.58% | 1.93% | -0.22% | -2.10% | |
65 Neutral | $3.55B | 23.14 | 3.25% | 0.19% | 3.54% | -55.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $5.63B | 19.79 | 15.95% | 2.11% | -0.16% | 212.77% | |
44 Neutral | $2.28B | -4.54 | -32.12% | ― | -3.23% | -595.55% |
* Consumer Cyclical Sector Average
UA
Under Armour
5.00
0.09
1.83%
COLM
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58.94
5.54
10.37%
PVH
PVH
74.52
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-9.50%
VFC
VF
13.85
-0.36
-2.55%
LEVI
Levi Strauss & Co
21.10
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-1.44%
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.