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Under Armour (UAA)
NYSE:UAA
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Under Armour
(NYSE:UAA)
Rating:45Neutral
Price Target:
$5.00
▲(1.63% Upside)
Positive Factors
Brand Perception
Under Armour's efforts to limit promotions aim to improve its premium perception in the market.
International Sales Growth
The EMEA region demonstrates strength with a 10% year-over-year sales increase in the first quarter and expected high single-digit growth in the second quarter.
Negative Factors
Competitive Position
Under Armour is lagging behind peers in product innovation, profitability, and direct-to-consumer infrastructure, impacting its competitive position in the sportswear sector.
North America Performance
North America, accounting for 59% of revenue, continues to underperform with expected low-double-digit revenue decline driven by order book challenges and a promotional market.
Tariff Impact
Tariffs are causing approximately $100 million in additional costs, leading to significant gross margin pressure.
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend YieldN/A
Average Volume (3M)12.26M
Price to Earnings (P/E)21.3
Beta (1Y)1.00
Revenue Growth-8.02%
EPS GrowthN/A
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength75
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.02
Shares Outstanding188,834,380
10 Day Avg. Volume18,205,731
30 Day Avg. Volume12,264,427
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda11.19
Forecast
1Y Price Target
$5.60Price Target Upside13.82% Upside
Rating ConsensusHold
Number of Analyst Covering17
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:Aug 08, 2025
(Q1-2026)
| % Change Since: -25.90%|
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Negative
The earnings call reflects a challenging environment for Under Armour, with significant revenue declines in key regions like North America and APAC, and a notable decline in footwear revenue. Additionally, the impact of tariffs poses a substantial challenge to profitability. However, there are positive signs in EMEA's growth, improvement in gross margin, and reductions in SG&A expenses. Despite these positives, the lowlights outweigh the highlights, indicating a challenging period for the company.Q1-2026 Updates
Positive Updates
EMEA Regional Performance
Revenue in EMEA increased by 10%, or 6% after adjusting for foreign currency fluctuations, indicating steady growth in the region. The region saw growth across all channels during the quarter, led by full-price wholesale business.
Gross Margin Improvement
First quarter gross margin increased by 70 basis points year-over-year to 48.2%, driven by favorable foreign currency impacts, pricing benefits, and favorable product mix.
Licensing Revenue Growth
Licensing revenues increased by 12% with growth in both North American and international licensees.
SG&A Expense Reduction
SG&A expenses decreased by 37% to $530 million in the first quarter, primarily due to reduced marketing and savings from the restructuring plan.
Inventory Control
Inventory at the end of Q1 was $1.1 billion, a 2% increase year-over-year, indicating effective inventory management amidst challenges.
Negative Updates
North America Revenue Decline
Revenue in North America declined by 5%, primarily due to a decrease in the full price wholesale business and lower e-commerce sales.
APAC Revenue Decline
APAC revenue decreased by 10% on both a reported and currency-neutral basis, with declines in wholesale and DTC due to weak consumer confidence in a competitive market.
Footwear Revenue Decline
Footwear revenue was down 14% in the quarter, reflecting a challenging consumer demand environment and deliberate work to optimize the business.
Tariff Impact
The company is facing approximately $100 million in additional tariff-related costs, which along with softer-than-expected demand, has significantly impacted profitability.
Projected Operating Income Decline
Due to the tariff costs and demand impacts, the projected operating income is expected to be about half of fiscal '25 levels.
Company Guidance
During the Under Armour Q1 2026 earnings call, the company discussed its ongoing transformation strategy aimed at enhancing brand identity and operational efficiency. Key metrics highlighted include a 25% SKU reduction target, a 30% reduction in materials for 2025 products, and plans to decrease materials further in 2026. The company reported a 4% decline in first-quarter revenue to $1.1 billion, with North America down 5% and EMEA up 10%. Gross margin increased by 70 basis points to 48.2%, while SG&A expenses decreased by 37% to $530 million. Under Armour is navigating a challenging environment with new tariffs expected to incur approximately $100 million in additional costs, impacting fiscal 2026 profitability to about half of the previous year. Despite these challenges, the brand is focusing on creating higher full-price sales and leveraging product innovations to drive long-term growth.Under Armour Financial Statement Overview
Summary
Under Armour is experiencing financial difficulties, with declining revenues and profitability concerns. The balance sheet remains relatively stable, but cash flow challenges persist. The company needs to address operational inefficiencies and improve cash flow management to enhance financial health.Income Statement
Under Armour has faced declining revenue growth and profitability challenges. The revenue has decreased by 2.85% in the most recent period, and the company reported a negative net profit margin of -3.90%. Despite a decent gross profit margin of 47.92%, the negative EBIT and EBITDA margins indicate operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.69. However, the negative return on equity of -10.65% highlights profitability issues. The equity ratio of 43.96% suggests a stable capital structure, but the company needs to improve its returns to enhance shareholder value.55
Neutral
Cash Flow
The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow. Although free cash flow has grown by 48.38%, the operating cash flow to net income ratio is negative, indicating cash flow management issues. The free cash flow to net income ratio of 3.84 suggests some ability to cover net losses, but overall cash flow health is weak.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
4.92
Price Trends
6.65
Negative
6.36
Negative
7.34
Negative
Market Momentum
-0.48
Positive
29.25
Positive
7.71
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 4.92 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 6.65, and below the 200-day MA of 7.34, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 7.71 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.89B | 15.60 | 58.07% | 2.91% | 3.47% | 5.86% | |
67 Neutral | ¥277.48B | 14.89 | 6.81% | 2.50% | 5.07% | -22.68% | |
65 Neutral | $3.31B | 24.49 | 8.89% | 1.75% | 2.26% | -37.52% | |
64 Neutral | $2.89B | 13.42 | 12.93% | 2.28% | 0.81% | 4.86% | |
58 Neutral | $2.28B | 14.50 | 154.00% | ― | -27.88% | ― | |
50 Neutral | $4.77B | 56.22 | 7.83% | 2.78% | -7.41% | ― | |
45 Neutral | $2.08B | 21.34 | 5.50% | ― | -8.02% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
UAA
Under Armour
5.17
-2.83
-35.38%
COLM
Columbia Sportswear
53.45
-25.69
-32.46%
HBI
Hanesbrands
6.43
0.06
0.94%
VFC
VF
13.08
-3.45
-20.87%
KTB
Kontoor Brands
70.90
1.21
1.74%
ZGN
Ermenegildo Zegna
8.06
-2.03
-20.12%
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.