Under Armour (UAA)
NYSE:UAA
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Under Armour
(NYSE:UAA)
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Rating:55Neutral
Price Target:
$6.00
▲(0.33% Upside)
Action:ReiteratedDate:02/07/26
The score is held back primarily by weak financial performance (TTM losses, revenue contraction, and negative free cash flow). Technicals are a key support with strong momentum above major moving averages, though indicators are stretched. Earnings call takeaways are mixed, with modestly improved guidance and better adjusted results offset by continued top-line and margin headwinds and large GAAP-impacting charges; valuation support is limited due to negative earnings and no provided dividend yield.
Positive Factors
Inventory & SKU Rationalization
Reducing inventory and cutting low‑productivity SKUs improves working capital and lowers markdown risk. Tighter assortments enhance forecasting, fulfillment and product profitability over multiple quarters, supporting steadier cash conversion and fewer clearance-driven margin hits.
Negative Factors
Earnings & Profitability Deterioration
Sustained net losses and negative EBITDA erode retained earnings and limit capacity to reinvest in product, marketing, and inventory. Durable recovery requires consistent margin improvement and revenue stabilization; otherwise financial flexibility and returns remain impaired over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Inventory & SKU Rationalization
Reducing inventory and cutting low‑productivity SKUs improves working capital and lowers markdown risk. Tighter assortments enhance forecasting, fulfillment and product profitability over multiple quarters, supporting steadier cash conversion and fewer clearance-driven margin hits.
Read all positive factors
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.48B
Dividend YieldN/A
Average Volume (3M)9.87M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-6.35%
EPS Growth-565.47%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.09
Shares Outstanding188,834,380
10 Day Avg. Volume10,470,000
30 Day Avg. Volume9,867,002
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 Cap1.73
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda-214.24
Forecast
1Y Price Target
$7.18Price Target Upside20.07% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)0.11
Revenue Forecast (FY)$4.96B
Under Armour Business Overview & Revenue Model
Company Description
Under 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 f...
How the Company Makes Money
Under Armour primarily makes money by selling branded athletic products—apparel, footwear, and accessories—through two main routes: (1) wholesale and (2) direct-to-consumer (DTC). In the wholesale channel, Under Armour sells products in bulk to th...
Under Armour Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call communicated tangible operational progress—inventory and SKU simplification, improved product momentum in key franchises, adjusted results that beat expectations, and a modestly improved full-year outlook—offset by continued material headwinds: GAAP losses driven by large nonrecurring charges (litigation reserve, restructuring, and a tax valuation allowance), gross margin pressure from tariffs and promotions, and pronounced footwear and North America top-line weakness. Management emphasized stabilization, a clearer operating model, and confidence in execution while acknowledging work remains.Positive Updates
Adjusted Results Ahead of Expectations
Adjusted Q3 operating income of $26M exceeded guidance; adjusted diluted EPS of $0.09 (ex-items) also beat outlook. Company modestly raised its full-year adjusted operating income outlook to approximately $110M (high end of prior range).
Negative Updates
GAAP Losses and Large Non-Recurring Charges
Reported Q3 operating loss of $150M and reported diluted loss per share of $1.01 driven by multiple nonrecurring items including a $99M litigation reserve, $75M of restructuring charges in Q3, and a $247M non-cash valuation allowance against certain U.S. federal deferred tax assets.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted Results Ahead of Expectations
Adjusted Q3 operating income of $26M exceeded guidance; adjusted diluted EPS of $0.09 (ex-items) also beat outlook. Company modestly raised its full-year adjusted operating income outlook to approximately $110M (high end of prior range).
Read all positive updates
Company Guidance
Under Armour updated fiscal 2026 guidance and key Q3 metrics: full‑year revenue is now expected to decline ~4% (vs prior ‑4% to ‑5%), with North America down ~8%, APAC down ~6% and EMEA up ~9%; Q3 revenue fell 5% to $1.3B. Full‑year gross margin is expected to decline ~190 bps (Q3 GM was 44.4%, down 310 bps YoY) driven by ~180 bps of supply‑chain headwinds (including ~200 bps from higher U.S. tariffs), ~140 bps of pricing/promotional pressure and ~40 bps of unfavorable mix, partially offset by +30 bps FX and +20 bps product mix. Adjusted SG&A is expected to decline mid‑single digits (Q3 SG&A $665M, +4%; adjusted SG&A $563M, ‑7%); Q3 included a $99M litigation reserve and ~$78M of restructuring/transformation charges ($75M restructuring + $3M transformation). Adjusted operating income is expected at the top end of the $95M–$110M range (~$110M) with adjusted diluted EPS $0.10–$0.11; Q3 adjusted operating income was $26M and adjusted diluted EPS $0.09 (reported operating loss $150M, reported diluted loss per share $1.01, including a $247M non‑cash valuation allowance). Balance sheet metrics: inventory down 2% to just over $1.0B, cash $465M, $600M in restricted investments reserved for June note obligations, and $0 drawn on the $1.1B revolver. The company has incurred $224M of restructuring/transform expenses to date ($89M cash, $135M non‑cash), expects up to $255M total by end of 2026, realized $35M of savings in FY25 and is on track for an incremental ~$55M in FY26; a favorable tax method change contributed roughly $0.06 to Q3 EPS and the full‑year non‑GAAP tax rate is expected to be roughly in line with FY25.Under Armour Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
54
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.98B | 5.16B | 5.70B | 5.90B | 5.68B | 4.47B |
| Gross Profit | 2.32B | 2.47B | 2.63B | 2.64B | 2.86B | 2.16B |
| EBITDA | -20.07M | 8.56M | 372.34M | 399.04M | 667.95M | 153.15M |
| Net Income | -519.71M | -201.27M | 232.04M | 374.46M | 360.06M | -549.18M |
Balance Sheet | ||||||
| Total Assets | 4.63B | 4.30B | 4.76B | 4.83B | 4.45B | 4.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 501.36M | 858.69M | 710.93M | 1.01B | 1.35B |
| Total Debt | 2.25B | 1.30B | 1.44B | 1.52B | 1.48B | 1.97B |
| Total Liabilities | 3.19B | 2.41B | 2.61B | 2.86B | 2.72B | 3.14B |
| Stockholders Equity | 1.44B | 1.89B | 2.15B | 1.97B | 1.73B | 1.77B |
Cash Flow | ||||||
| Free Cash Flow | -45.91M | -228.00M | 203.64M | -197.71M | 595.07M | 120.57M |
| Operating Cash Flow | 54.88M | -59.32M | 353.97M | -9.91M | 664.83M | 212.86M |
| Investing Cash Flow | -700.86M | -126.35M | -105.33M | -152.80M | -68.35M | 66.34M |
| Financing Cash Flow | 334.13M | -180.81M | -78.69M | -126.38M | -418.74M | 436.85M |
Under Armour Technical Analysis
Negative
5.98
Price Trends
6.67
Negative
5.68
Positive
5.71
Positive
Market Momentum
-0.25
Positive
36.09
Neutral
15.38
Positive
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 5.98 is below the 20-day moving average (MA) of 6.47, below the 50-day MA of 6.67, and above the 200-day MA of 5.71, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 15.38 is Positive, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $20.20B | 15.13 | 34.74% | 0.93% | 12.32% | 29.40% | |
64 Neutral | $3.04B | 215.89 | 6.99% | 0.22% | 0.52% | -45.80% | |
63 Neutral | $2.87B | 17.00 | 10.53% | 2.18% | 2.76% | -7.83% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $7.15B | 15.25 | 27.00% | 2.58% | -1.23% | 109.67% | |
55 Neutral | $2.48B | -1.23 | -29.46% | ― | -6.35% | -565.47% | |
53 Neutral | $6.47B | 6.01 | 14.79% | 1.95% | -3.12% | ― |
* Consumer Cyclical Sector Average
UAA
Under Armour
5.89
-0.46
-7.24%
COLM
Columbia Sportswear
54.84
-20.30
-27.01%
PVH
PVH
66.45
-0.01
-0.02%
RL
Ralph Lauren
333.64
111.29
50.05%
VFC
VF
16.53
0.44
2.71%
LEVI
Levi Strauss & Co
18.30
2.77
17.81%
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.