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Under Armour (UAA)
NYSE:UAA
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Under Armour
(NYSE:UAA)
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Rating:47Neutral
Price Target:
$4.50
▼(-2.39% Downside)
Under Armour's overall stock score reflects significant challenges in financial performance and technical analysis. The company's revenue and margin declines, coupled with bearish technical indicators, weigh heavily on the score. While valuation is reasonable, the lack of dividend yield and cautious earnings call sentiment further impact the outlook.
Positive Factors
Product Innovation
New product innovations can drive growth and improve brand perception, potentially increasing market share and competitive positioning.
Leadership Transition
The appointment of a new CFO with extensive experience can enhance strategic financial management and support long-term business growth.
EMEA Growth
Strong growth in EMEA indicates successful market penetration and potential for further expansion in international markets.
Negative Factors
Revenue Decline
Declining revenue, especially in key markets like North America, suggests challenges in maintaining market share and competitive pressures.
Gross Margin Decline
A declining gross margin can impact profitability and indicates potential challenges in cost management and pricing strategy.
Cash Flow Issues
Cash flow challenges can strain liquidity and limit the company's ability to invest in growth opportunities or manage debt effectively.
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.88B
Dividend YieldN/A
Average Volume (3M)9.40M
Price to Earnings (P/E)20.0
Beta (1Y)0.99
Revenue Growth-8.02%
EPS GrowthN/A
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.04
Shares Outstanding188,834,380
10 Day Avg. Volume9,947,101
30 Day Avg. Volume9,402,753
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 Cap1.95
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda11.19
Forecast
1Y Price Target
$5.65Price Target Upside22.56% Upside
Rating ConsensusHold
Number of Analyst Covering20
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Under Armour Business Overview & Revenue Model
Company DescriptionUnder Armour, Inc. is a leading sports apparel and footwear company headquartered in Baltimore, Maryland. Founded in 1996, Under Armour develops innovative performance apparel, footwear, and accessories designed to enhance athletic performance. The company operates in the athletic apparel sector, focusing on both men’s and women’s clothing, as well as footwear and sports accessories. Under Armour's product offerings include moisture-wicking shirts, compression gear, outerwear, and a range of footwear designed for various sports and activities.
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:Nov 06, 2025
(Q2-2026)
| Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
Under Armour is undergoing a challenging transition period with revenue declines across several regions, particularly North America and APAC. However, there are positive signs in product innovation, leadership changes, and growth in EMEA. Despite these positive developments, the impact of revenue and margin declines creates a balanced but cautious outlook.Q2-2026 Updates
Positive Updates
Leadership Transition
Reza Taleghani is set to join Under Armour as the new CFO, bringing over 25 years of global finance leadership experience. This transition is seen as a strategic move to drive the brand and business forward.
Product Innovation
Under Armour is introducing new products like the Velociti Elite 3, SlipSpeed Echo, and NEOLAST fiber technology, which are expected to drive growth and improve brand perception.
EMEA Growth
EMEA revenue increased by 12%, driven by full-price wholesale business and strong growth in the direct-to-consumer channel.
Licensing Revenue Increase
Licensing revenues increased by 17%, driven by strength in the international business.
Reduced Inventory Levels
Inventory at the end of Q2 was $1 billion, a 6% decrease compared to the same period last year, indicating better inventory management.
Negative Updates
Revenue Decline
Overall revenue declined by 5% to $1.3 billion. North America revenue decreased by 8%, primarily due to a decline in full-price wholesale business and lower e-commerce sales.
APAC Revenue Challenges
Revenue in APAC declined by 14%, driven mainly by declines in the wholesale business.
Footwear Revenue Decline
Footwear revenue declined by 16%, reflecting ongoing pressure from a challenging consumer demand environment.
Gross Margin Decline
Gross margin declined by 250 basis points to 47.3%, mainly due to supply chain headwinds and higher U.S. tariffs.
Increased SG&A Expenses
SG&A expenses increased by 12% to $582 million, driven by higher marketing expenses and restructuring charges.
Company Guidance
During the Under Armour Q2 2026 earnings call, the company provided guidance indicating a revenue decline of 4% to 5% for fiscal 2026, with North America and APAC revenues expected to decrease by high single-digit percentages, while EMEA is projected to grow by a high single-digit percentage. Gross margin is anticipated to decline by 190 to 210 basis points, primarily due to higher U.S. tariffs. Adjusted SG&A is expected to decrease at a mid-single-digit rate. The company projects an adjusted operating income of $90 million to $105 million and adjusted diluted earnings per share in the range of $0.03 to $0.05. For the third quarter, revenue is expected to decline by 6% to 7%, with North America facing a low double-digit decline, EMEA growing at a high single-digit rate, and APAC declining by a high single-digit rate. Gross margin for Q3 is expected to decline by 310 to 330 basis points, largely due to tariff impacts.Under Armour Financial Statement Overview
Summary
Under Armour's financial statements show a strong gross profit margin but face challenges with low net profit margin and negative cash flow, indicating liquidity concerns. The balance sheet is stable with manageable leverage, but low return on equity suggests limited efficiency in generating returns.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
Negative
4.61
Price Trends
4.87
Negative
5.65
Negative
6.16
Negative
Market Momentum
-0.11
Positive
41.52
Neutral
22.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAA, the sentiment is Negative. The current price of 4.61 is below the 20-day moving average (MA) of 4.73, below the 50-day MA of 4.87, and below the 200-day MA of 6.16, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 22.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.74B | 24.69 | 32.55% | 1.10% | 9.61% | 21.14% | |
67 Neutral | $2.75B | 15.09 | 10.84% | 2.42% | 2.77% | -7.83% | |
64 Neutral | $7.70B | 16.80 | 25.99% | 2.68% | 3.20% | 200.49% | |
64 Neutral | $3.61B | 8.41 | 9.32% | 0.19% | -1.14% | -29.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $5.38B | 60.78 | 6.39% | 2.47% | -4.56% | ― | |
47 Neutral | $1.88B | 19.99 | 5.50% | ― | -8.02% | ― |
* Consumer Cyclical Sector Average
UAA
Under Armour
4.61
-6.52
-58.58%
COLM
Columbia Sportswear
52.35
-31.30
-37.42%
PVH
PVH
77.94
-27.29
-25.93%
RL
Ralph Lauren
316.90
98.19
44.90%
VFC
VF
14.78
-6.38
-30.15%
LEVI
Levi Strauss & Co
20.16
3.58
21.59%
Under Armour Corporate Events
Under Armour Reports Q1 Fiscal 2026 Results
Aug 9, 2025
Under Armour, Inc., headquartered in Baltimore, Maryland, is a prominent player in the athletic performance apparel, footwear, and accessories industry, known for its innovative products designed to enhance athletic performance.
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.