Under Armour (NYSE:UA) Issues Earnings Results

Under Armour (NYSE:UA) posted its quarterly earnings results on Tuesday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.01), Zacks reports. Under Armour had a negative net margin of 10.44% and a positive return on equity of 1.48%. Under Armour updated its FY 2027 guidance to 0.080-0.120 EPS.

Here are the key takeaways from Under Armour’s conference call:

• Under Armour said fiscal 2026 revenue fell 4% to $5.0 billion, with North America down 8% while EMEA rose 9% and APAC declined 5%. Fourth-quarter revenue was down 1%, reflecting continued pressure in North America but growth in international regions.
• Management is guiding fiscal 2027 to stabilization, with revenue expected to be down slightly overall but roughly flat excluding the exit of the Curry Brand. The company said North America should be down low single digits, while EMEA and APAC are expected to grow low single digits.
• Gross margin is expected to improve by about 220 to 270 basis points in fiscal 2027, helped by a potential tariff refund, pricing actions, lower discounting, and a better channel mix. Management also expects the first quarter to benefit materially from the tariff refund timing.
• Under Armour highlighted a continued shift toward a more premium, focused product lineup, including new offerings like the Bouncy Cotton Tee and broader innovation in performance apparel and footwear. The company has reduced SKUs by 25% over the past two years and plans further assortment cuts to improve margins and simplify execution.
• Despite the strategic reset, management acknowledged that profitability is not improving fast enough and that fiscal 2027 will still involve elevated costs, including about $305 million of total transformation spend. Adjusted operating income is projected at $140 million to $160 million, while the company also expects a high tax rate and ongoing tariff and geopolitical pressure.

Under Armour Stock Down 19.3%

Shares of NYSE:UA traded down $1.14 during trading on Tuesday, hitting $4.75. The company’s stock had a trading volume of 5,037,506 shares, compared to its average volume of 4,057,654. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.92 and a current ratio of 1.43. Under Armour has a fifty-two week low of $3.95 and a fifty-two week high of $7.91. The stock’s 50-day moving average price is $6.12 and its two-hundred day moving average price is $5.55. The company has a market capitalization of $2.02 billion, a PE ratio of -3.88 and a beta of 1.65.

Analyst Ratings Changes

UA has been the subject of several analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Under Armour in a research report on Friday. Zacks Research upgraded Under Armour to a “hold” rating in a research note on Wednesday, March 11th. Finally, Citigroup cut Under Armour from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 10th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Sell”.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Integrated Advisors Network LLC lifted its stake in shares of Under Armour by 2.7% in the fourth quarter. Integrated Advisors Network LLC now owns 72,452 shares of the company’s stock worth $348,000 after acquiring an additional 1,884 shares in the last quarter. Tidal Investments LLC raised its stake in Under Armour by 2.1% during the second quarter. Tidal Investments LLC now owns 110,954 shares of the company’s stock valued at $720,000 after buying an additional 2,255 shares in the last quarter. Osaic Holdings Inc. raised its stake in Under Armour by 6.8% during the second quarter. Osaic Holdings Inc. now owns 35,932 shares of the company’s stock valued at $233,000 after buying an additional 2,295 shares in the last quarter. Twinbeech Capital LP raised its stake in Under Armour by 21.0% during the fourth quarter. Twinbeech Capital LP now owns 20,000 shares of the company’s stock valued at $96,000 after buying an additional 3,465 shares in the last quarter. Finally, Prudential Financial Inc. raised its stake in Under Armour by 26.4% during the second quarter. Prudential Financial Inc. now owns 19,560 shares of the company’s stock valued at $127,000 after buying an additional 4,083 shares in the last quarter. Institutional investors and hedge funds own 36.35% of the company’s stock.

Under Armour Company Profile

Under Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company’s product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.