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Under Armour (UAA)
NYSE:UAA
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Under Armour
(NYSE:UAA)
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Rating:46Neutral
Price Target:
$5.00
▲(4.82% Upside)
Under Armour's overall stock score reflects significant financial and technical challenges. The company's strong gross margin is overshadowed by weak profitability and cash flow issues. Technical indicators point to bearish momentum, and valuation metrics are moderate. The absence of a dividend yield further limits appeal.
Positive Factors
EMEA Revenue Growth
The growth in EMEA indicates strong market penetration and potential for future expansion, enhancing Under Armour's global footprint and revenue diversification.
Improved Gross Margin
The improvement in gross margin reflects effective cost management and pricing strategies, contributing to better profitability and operational efficiency.
SG&A Expense Reduction
Significant reduction in SG&A expenses indicates successful cost control measures, potentially improving net margins and financial health.
Negative Factors
North America Revenue Decline
The decline in North America, a key market, suggests challenges in maintaining competitive positioning and consumer engagement, impacting overall revenue.
APAC Revenue Decrease
The decrease in APAC revenue highlights difficulties in a competitive market, potentially limiting growth opportunities and affecting regional performance.
Impact of Tariffs
Tariff-related costs pose a significant challenge, likely compressing margins and affecting profitability, necessitating strategic adjustments to mitigate impact.
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend YieldN/A
Average Volume (3M)13.99M
Price to Earnings (P/E)20.7
Beta (1Y)0.94
Revenue Growth-8.02%
EPS GrowthN/A
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.02
Shares Outstanding188,834,380
10 Day Avg. Volume12,589,181
30 Day Avg. Volume13,988,954
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.43
Price to Sales (P/S)0.52
P/FCF Ratio-11.85
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda11.19
Forecast
1Y Price Target
$5.88Price Target Upside23.27% Upside
Rating ConsensusHold
Number of Analyst Covering18
Under Armour Business Overview & Revenue Model
Company DescriptionUnder Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers its apparel in compression, fitted, and loose fit types. It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company offers accessories, which include gloves, bags, headwear, and sports masks; and digital subscription and advertising services under the MapMyRun and MapMyRide platforms. It primarily offers its products under the UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.
How the Company Makes MoneyUnder Armour generates revenue through several key streams, primarily from the sale of its performance apparel, footwear, and accessories both through direct-to-consumer channels and wholesale distribution. The company sells products via its own retail stores, e-commerce platform, and through partnerships with various sporting goods retailers and specialty stores. Additionally, Under Armour has established collaborations with professional athletes and teams, enhancing its brand visibility and credibility in the sports community. The company also benefits from licensing agreements that allow it to generate income from its brand through third-party products. Seasonal product launches and marketing campaigns aimed at athletes and fitness enthusiasts play a significant role in driving sales and expanding its market reach.
Under Armour Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
While Under Armour shows positive signs in its operational improvements, cost management, and regional growth in EMEA, significant challenges remain in North America and APAC with revenue declines and increased tariff costs. The footwear segment also struggles, impacting overall financial performance.Q1-2026 Updates
Positive Updates
EMEA Region Performance
EMEA revenue increased 10% (6% after adjusting for foreign currency), with growth across all channels, led by the full price wholesale business.
Licensing Revenue Increase
Licensing revenues increased 12% with growth in both North American and international licensees.
Gross Margin Improvement
Gross margin increased by 70 basis points year-over-year to 48.2%, driven by favorable foreign currency impacts and pricing benefits.
SG&A Expense Reduction
SG&A expenses decreased 37% to $530 million, with adjusted SG&A expenses reflecting a 6% decline due to lower marketing and ongoing cost management efforts.
Negative Updates
North America Revenue Decline
Revenue in North America declined 5%, primarily due to decreases in full price wholesale business and lower e-commerce sales.
APAC Revenue Decline
APAC revenue decreased 10% on both reported and currency-neutral basis, with declines in wholesale and DTC due to weak consumer confidence and a competitive market.
Footwear Revenue Decline
Footwear revenue was down 14% in the quarter with declines across all categories, influenced by deliberate work to optimize the business and challenging consumer demand.
Additional Tariff Costs
Under Armour anticipates approximately $100 million in additional tariff-related costs, affecting profitability significantly.
Overall Revenue Decline
First quarter revenue declined 4% to $1.1 billion, with regional declines and challenges in North America and APAC.
Company Guidance
In the Under Armour Q1 2026 earnings call, the company emphasized a strategic transformation aimed at revitalizing its brand focus, with a notable shift from a company-centric to a brand-first approach. Key metrics highlighted include a 4% decline in first-quarter revenue, amounting to $1.1 billion, with specific regional performances such as a 5% decrease in North America and a 10% increase in EMEA. The company aims to reduce SKUs by 25% and has already cut materials by 30% for 2025 products. Gross margin improved by 70 basis points to 48.2%, despite facing approximately $100 million in additional tariff-related costs. The company anticipates operating income for fiscal 2026 to be roughly half of fiscal 2025 levels, largely due to these tariffs and softer demand. Under Armour is also focusing on selective pricing adjustments and exploring alternative sourcing to mitigate these impacts, with expectations of realizing most of the gross margin offsets in fiscal 2027 and beyond.Under Armour Financial Statement Overview
Summary
Under Armour's financial performance is mixed. The company has a strong gross profit margin of 48.07%, but faces challenges with a low net profit margin of 1.99% and declining revenue. The balance sheet is stable with manageable leverage, but cash flow issues are significant, indicating potential liquidity concerns.Income Statement
Under Armour's income statement shows mixed results. The TTM data indicates a gross profit margin of 48.07%, which is relatively strong, but the net profit margin is low at 1.99%, indicating challenges in converting revenue into profit. Revenue has declined by 0.96% in the TTM period, reflecting potential market challenges or competitive pressures. The EBIT margin is modest at 3.83%, and EBITDA margin is 6.41%, suggesting moderate operational efficiency.45
Neutral
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.89, indicating manageable leverage. However, the return on equity is low at 5.25%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 38.54%, indicating a solid equity base relative to total assets.55
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is high at 1.97, indicating cash flow issues despite reported net income. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.11B | 5.16B | 5.70B | 5.90B | 5.68B | 4.47B |
| Gross Profit | 2.46B | 2.47B | 2.63B | 2.64B | 2.86B | 2.16B |
| EBITDA | 327.72M | 8.56M | 372.34M | 399.04M | 667.95M | 153.15M |
| Net Income | 101.55M | -201.27M | 232.04M | 374.46M | 360.06M | -549.18M |
Balance Sheet | ||||||
| Total Assets | 4.87B | 4.30B | 4.76B | 4.86B | 4.99B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 910.99M | 501.36M | 858.69M | 711.91M | 1.67B | 1.52B |
| Total Debt | 1.68B | 1.30B | 1.44B | 1.52B | 1.50B | 2.01B |
| Total Liabilities | 2.99B | 2.41B | 2.61B | 2.86B | 2.90B | 3.35B |
| Stockholders Equity | 1.87B | 1.89B | 2.15B | 2.00B | 2.09B | 1.68B |
Cash Flow | ||||||
| Free Cash Flow | -321.81M | -228.00M | 203.64M | -197.71M | 595.07M | 120.57M |
| Operating Cash Flow | -163.44M | -59.32M | 353.97M | -9.91M | 664.83M | 212.86M |
| Investing Cash Flow | -166.03M | -126.35M | -105.33M | -152.80M | -68.35M | 66.34M |
| Financing Cash Flow | 334.72M | -180.81M | -78.69M | -126.38M | -418.74M | 436.85M |
Under Armour Technical Analysis
Neutral
4.77
Price Trends
5.58
Negative
6.13
Negative
6.69
Negative
Market Momentum
-0.18
Negative
44.97
Neutral
39.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAA, the sentiment is Neutral. The current price of 4.77 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 5.58, and below the 200-day MA of 6.69, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UAA.
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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | 4.47B | 17.71 | 50.42% | 2.58% | 3.47% | 5.86% | |
70 Outperform | 3.72B | 22.33 | 8.41% | 1.55% | -1.88% | -5.94% | |
67 Neutral | 2.88B | 12.96 | 13.59% | 2.28% | 0.81% | 4.86% | |
55 Neutral | 2.33B | 14.82 | 53.63% | ― | -27.88% | ― | |
53 Neutral | 5.75B | 66.25 | -3.66% | 2.44% | -7.41% | ― | |
46 Neutral | $2.05B | 20.69 | 5.50% | ― | -8.02% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
UAA
Under Armour
4.97
-3.94
-44.22%
COLM
Columbia Sportswear
52.64
-29.11
-35.61%
PVH
PVH
86.78
-13.87
-13.78%
RL
Ralph Lauren
311.97
120.72
63.12%
VFC
VF
14.73
-4.79
-24.54%
LEVI
Levi Strauss & Co
23.02
1.86
8.79%
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.