Under Armour (0LIK) AI Stock Analysis

Company Guidance

Under Armour updated fiscal 2027 guidance: full‑year revenue is now expected to decline mid‑single‑digits (North America down mid‑single‑digits, EMEA down low‑single‑digits, Asia‑Pacific down low‑single‑digits) while management is maintaining adjusted operating income of $140–$160 million; they expect full‑year gross margin expansion of ~220–270 basis points versus last year (including ~150 bps of IEEPA tariff benefit) and now forecast adjusted SG&A to decline at a low single‑digit rate. For Q2 the company expects revenue down high‑single‑digits (high‑single‑digit North America & APAC, low‑double‑digit EMEA), adjusted operating income of $10–$20 million and an adjusted diluted loss per share of $0.01–$0.03. Context and related metrics cited on the call include Q1 revenue of $1.1 billion (‑3% YoY), Q1 adjusted operating income $52 million (vs prior outlook $30–$40M), Q1 gross margin 54.1% (+590 bps YoY), Q1 adjusted diluted EPS $0.05, inventory $1.1 billion (‑3% YoY), cash $396 million, $200 million outstanding on the revolver, anticipated total restructuring/transformation costs of ~$305 million (≈$266M incurred to date: $116M cash/$150M non‑cash), and SKU reduction targets of a further 25% over the next 18 months (roughly ~40%+ overall by end of ’28); the company also reiterated a roughly 10% tariff assumption for the period and expects to be free cash flow positive this year.