Under Armour (1UAA) AI Stock Analysis

Company Guidance

For fiscal 27, Under Armour expects revenue to decline at a mid single digit rate, gross margin expansion of 170 to 22 basis points, including roughly 150 basis points of benefit from IEEPA tariff refunds related to cost expense in fiscal 26, or improvement of approximately 20 to 70 basis points excluding that benefit, adjusted SG&A to decline at a low single digit rate, adjusted operating income of the $140 million to the $160 million range, including about $70 million of benefit from IEPA tariff refunds, anticipated restructuring transformation expenses of approximately $44 million, a $3 million benefit from the litigation reserve accrual reversal, and about $45 million of headwinds related to the ongoing Middle East conflict, and adjusted diluted earnings per share of $0.08 to $0.12; fiscal 27 capital expenditures are expected to be modestly below last year's level. For the third quarter, revenue is expected to decline approximately 8% to 9%, including a low double digit decline in North America, a high single digit decline in EMEA, and roughly flat revenue in APAC, with third quarter gross margin expected to increase 30 to 50 basis points, adjusted SG&A expected to decline at a low single digit rate, adjusted operating income expected to range from a loss of $5 million to a profit of $5 million, and adjusted diluted loss per share of $0.01 to $0.03; the fourth quarter includes a couple of percentage points of revenue benefit from the youth transition in North America, a few additional points from wholesale initiatives to reduce excess inventory, and about 5 percentage points of improvement in EMEA from distributor shipments shifting into the fourth quarter.