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Under Armour
(NYSE:UAA)
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Rating:52Neutral
Price Target:
$7.00
▲(7.86% Upside)
Action:Reiterated
Date:07/07/26
The score is held back primarily by weak financial performance (losses, declining revenue, and negative operating/free cash flow). Offsetting this, technical conditions are relatively strong with positive momentum and trend support. Earnings-call guidance suggests improvement and margin expansion but with notable execution risks and reliance on a tariff-related benefit, while valuation remains constrained by losses and no stated dividend support.
Positive Factors
Healthy gross margins and planned expansion
Under Armour retains a relatively high gross margin base, and management expects ~220–270 bps of gross margin expansion driven by pricing, reduced promotions and healthier channel mix. A durable mid/high-40% gross margin profile supports long-term profitability potential as product premiumization and assortment simplification take hold.
Negative Factors
Multi-year revenue contraction
A sustained top-line decline erodes scale benefits across wholesale and DTC channels, pressures operating leverage, and weakens bargaining power with retail partners. Continued revenue shrinkage limits the company's ability to absorb fixed costs and invest in marketing or product development, slowing durable recovery prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy gross margins and planned expansion
Under Armour retains a relatively high gross margin base, and management expects ~220–270 bps of gross margin expansion driven by pricing, reduced promotions and healthier channel mix. A durable mid/high-40% gross margin profile supports long-term profitability potential as product premiumization and assortment simplification take hold.
Read all positive factors
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.78B
Dividend YieldN/A
Average Volume (3M)8.25M
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-3.39%
EPS Growth-152.87%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-1.16
Shares Outstanding188,839,510
10 Day Avg. Volume10,548,777
30 Day Avg. Volume8,249,005
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.78
Price to Sales (P/S)0.51
P/FCF Ratio-15.55
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.75
Enterprise Value/Ebitda-45.75
Forecast
1Y Price Target
$5.83Price Target Upside-10.14% Downside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)0.11
Revenue Forecast (FY)$4.94B
Under Armour Business Overview & Revenue Model
Company Description
Under Armour, Inc. (UAA) specializes in the design, promotion, and distribution of athletic clothing, footwear, and accessories for men, women, and young people. Its apparel collection includes various fits such as compression, fitted, and loose s...
How the Company Makes Money
Under Armour makes money primarily by selling branded athletic apparel, footwear, and accessories through two main channels: (1) wholesale distribution and (2) direct-to-consumer (DTC). Wholesale revenue comes from selling products in bulk to reta...
Under Armour Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call communicates meaningful progress on product assortment simplification, inventory discipline, and regional pockets of growth (EMEA, APAC, Latin America) alongside a clearer strategic focus and targeted marketing investments. However, near-term performance is constrained by significant margin headwinds from tariffs and promotions, continued North America revenue weakness, sizeable transformation costs (~$305M), an operating loss in Q4, and dependency on a tariff-refund timing benefit to drive much of the near-term margin improvement. Management positions fiscal '27 as a stabilization year with improving trends beyond Q1 but still expects slightly lower revenue for the year. Overall, positives (product, inventory, targeted investments, and clearer strategy) are balanced by material near-term financial and operational challenges.Positive Updates
Fiscal 2026 Revenue and Regional Growth
Fiscal 2026 revenue of $5.0B (down 4% YoY) with strength in EMEA (+9% FY) and pockets of growth in APAC and Latin America; Q4 revenue of $1.2B (down 1% YoY) with APAC Q4 +13% (8% cc) and Latin America Q4 +22% (8% cc).
Negative Updates
Top-line Pressure — North America Declines
North America was a drag: fiscal '26 North America revenue down 8% YoY; Q4 North America down 7%; guidance anticipates low-single-digit North America decline in fiscal '27 with Q1 expected to be the weakest (NA down high single-digits).
Read all updates
Q4-2026 Updates
Positive
Negative
Fiscal 2026 Revenue and Regional Growth
Fiscal 2026 revenue of $5.0B (down 4% YoY) with strength in EMEA (+9% FY) and pockets of growth in APAC and Latin America; Q4 revenue of $1.2B (down 1% YoY) with APAC Q4 +13% (8% cc) and Latin America Q4 +22% (8% cc).
Read all positive updates
Company Guidance
Under Armour guided to a year of stabilization in fiscal 2027 with revenue "down slightly" (roughly flat excluding a ~1-point Curry brand exit), regionally expecting low-single-digit declines in North America, low-single-digit growth in EMEA and APAC, and full-year gross margin expansion of ~220–270 basis points (including ~150 bps / roughly $70 million of IEEPA tariff refund largely recognized in Q1); adjusted operating income of $140–$160 million and adjusted diluted EPS of $0.08–$0.12. Management expects adjusted SG&A to rise low single digits (driven by ~2 points of higher compensation and ~1 point of incremental marketing) while keeping SG&A around 10–12% of revenue; the plan assumes the tariff refund offsets about $35 million of Middle East–related headwinds and funds ~$30 million of strategic marketing investment. For Q1 they forecast revenue down 2–3% (North America down ~7–8%, EMEA up low‑teens with ~3 points of shipment timing benefit, APAC roughly flat), gross margin up ~610–630 bps (roughly 600 bps from the tariff refund), Q1 adjusted operating income of $30–$40 million and adjusted EPS breakeven to $0.02; company also ended fiscal ’26 with $915 million inventory (‑3% YoY), ~$309 million cash and $605 million restricted investments.Under Armour Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
56
Neutral
Cash Flow
30
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.97B | 5.17B | 5.70B | 5.90B | 5.68B |
| Gross Profit | 2.26B | 2.47B | 2.63B | 2.64B | 2.86B |
| EBITDA | -60.98M | -62.27M | 404.64M | 414.10M | 667.95M |
| Net Income | -495.64M | -201.27M | 232.04M | 374.46M | 360.06M |
Balance Sheet | |||||
| Total Assets | 4.42B | 4.30B | 4.76B | 4.83B | 4.45B |
| Cash, Cash Equivalents and Short-Term Investments | 309.17M | 501.36M | 858.69M | 710.93M | 1.01B |
| Total Debt | 1.94B | 1.30B | 1.44B | 1.52B | 1.48B |
| Total Liabilities | 3.00B | 2.41B | 2.61B | 2.86B | 2.72B |
| Stockholders Equity | 1.41B | 1.89B | 2.15B | 1.97B | 1.73B |
Cash Flow | |||||
| Free Cash Flow | -162.16M | -228.00M | 203.64M | -197.71M | 595.07M |
| Operating Cash Flow | -75.09M | -59.32M | 353.97M | -9.91M | 664.83M |
| Investing Cash Flow | -688.81M | -126.35M | -105.33M | -152.80M | -68.35M |
| Financing Cash Flow | 560.63M | -180.81M | -78.69M | -126.38M | -418.74M |
Under Armour Technical Analysis
Positive
6.49
Price Trends
5.92
Positive
6.23
Positive
5.68
Positive
Market Momentum
0.24
Negative
64.00
Neutral
68.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAA, the sentiment is Positive. The current price of 6.49 is above the 20-day moving average (MA) of 6.25, above the 50-day MA of 5.92, and above the 200-day MA of 5.68, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UAA.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.07B | 25.79 | 34.77% | 0.93% | 14.63% | 29.96% | |
73 Outperform | $9.21B | 17.63 | 28.33% | 2.58% | 4.34% | 20.99% | |
70 Outperform | $3.25B | 20.18 | 10.26% | 2.18% | 0.54% | -19.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.56B | 23.97 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $2.78B | -5.70 | -30.13% | ― | -3.39% | -152.87% | |
52 Neutral | $6.49B | 25.99 | 15.92% | 1.95% | -0.72% | ― |
* Consumer Cyclical Sector Average
UAA
Under Armour
6.79
-0.20
-2.86%
COLM
Columbia Sportswear
62.97
3.83
6.47%
PVH
PVH
79.37
7.15
9.91%
RL
Ralph Lauren
394.90
108.99
38.12%
VFC
VF
16.77
4.78
39.87%
LEVI
Levi Strauss & Co
24.31
3.49
16.76%
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.