Under Armour’s Mixed Performance and Uncertain Outlook Lead to Hold Rating

William Blair analyst Dylan Carden has maintained their neutral stance on UAA stock, giving a Hold rating today.

Dylan Carden has given his Hold rating due to a combination of factors impacting Under Armour’s current performance and future outlook. The company reported a revenue decline of 5% in its fiscal second quarter, which was better than expected but still indicative of ongoing challenges in its recovery process. The decline was primarily driven by weaker sales in North America and the Asia-Pacific region, although there was some growth in EMEA markets.
Despite the revenue decline, Under Armour’s gross margin fell less than anticipated, benefiting from foreign currency tailwinds and pricing strategies. However, the company’s guidance for the third quarter and full year fell short of market expectations, primarily due to tariff-related pressures. Additionally, the upcoming change in CFO, with David Bergman stepping down and Reza Taleghani taking over, adds an element of uncertainty to the company’s future financial strategy. These mixed signals contribute to the Hold rating, as the company navigates through its restructuring phase.