Under Armour (UA) AI Stock Analysis

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Under Armour

(NYSE:UA)

Rating:62Neutral

Price Target:―

Under Armour's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. While the technical analysis shows bearish signals, the company has shown some positive strategic initiatives and board appointments that may support future growth. The valuation remains a concern, with negative profitability metrics. The improved outlook from the earnings call provides some optimism, but ongoing restructuring and competitive pressures in key regions remain critical challenges.

Under Armour (UA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.83B

Dividend YieldN/A

Average Volume (3M)2.68M

Price to Earnings (P/E)―

Beta (1Y)1.01

Revenue Growth-7.47%

EPS Growth-131.70%

CountryUS

Employees6,800

SectorConsumer Cyclical

Sector Strength64

IndustryApparel - Manufacturers

Share Statistics

EPS (TTM)-0.08

Shares Outstanding202,847,600

10 Day Avg. Volume2,120,742

30 Day Avg. Volume2,675,180

Financial Highlights & Ratios

PEG Ratio0.85

Price to Book (P/B)1.93

Price to Sales (P/S)0.00

P/FCF Ratio-19.48

Enterprise Value/Market Cap1.65

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit1.85

Enterprise Value/Ebitda7.51

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Under Armour Business Overview & Revenue Model

Company DescriptionUnder Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers its apparel in compression, fitted, and loose fit types. It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company offers accessories, which include gloves, bags, headwear, and sports masks; and digital subscription and advertising services under the MapMyRun and MapMyRide platforms. It primarily offers its products under the UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.

How the Company Makes MoneyUnder Armour generates revenue primarily through the sale of its athletic apparel, footwear, and accessories. The company's revenue streams can be categorized into direct-to-consumer sales via its retail stores and e-commerce platforms, and wholesale distribution to retailers worldwide. Under Armour also benefits from strategic partnerships and sponsorship deals with athletes and sports teams, which enhance brand visibility and drive sales. Additionally, the company invests in marketing and product innovation to maintain competitiveness in the athletic apparel industry, contributing to its overall earnings.

Under Armour Key Performance Indicators (KPIs)

Any

Door Count

Door Count
Indicates the number of retail locations, reflecting the company’s physical presence and potential market reach, as well as its strategy in brick-and-mortar retail.

Chart InsightsUnder Armour's Factory House door count has steadily increased, reflecting a strategic expansion focus, while Brand House locations have seen a decline, possibly due to restructuring efforts. The earnings call highlights a challenging retail environment with revenue declines, yet the company is optimistic about gross margin improvements and strategic repositioning. The shift in door count strategy aligns with Under Armour's focus on fewer, high-quality products and restructuring to regain market position, despite regional revenue challenges.

Data provided by:

Main Street Data

Under Armour Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q4-2025)

% Change Since: 9.00%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a company in transition, focusing on strategic restructuring and product innovation to regain market position. While there are significant achievements in gross margin improvements and EMEA performance, challenges remain, particularly in revenue declines across regions. The sentiment is cautiously optimistic but acknowledges the need for continued effort.

Q4-2025 Updates

Positive Updates

Exceeded Fiscal '25 Outlook

Despite a decline in revenue, Under Armour exceeded its fiscal '25 outlook, demonstrating foundational traction as the brand is repositioned.

Gross Margin Improvement

The fourth quarter gross margin increased by 170 basis points year-over-year to 46.7%, driven by supply chain benefits and lower discounting.

Successful Restructuring Efforts

Under Armour recognized $89 million in restructuring charges and related transformation expenses, with expectations for total charges to remain within $140 million to $160 million.

Strong Performance in EMEA

EMEA remained flat on a currency-neutral basis and was the top-performing region for fiscal '25, showing strong partnerships and category focus.

Product Innovation and Brand Strategy

Introducing new collections like the SlipSpeed ECHO and the upcoming Halo collection, focusing on fewer, high-quality products to elevate the brand.

Negative Updates

Revenue Decline

The fourth quarter revenue was down 11% to $1.2 billion, with declines in key regions such as North America and APAC.

North American Market Challenges

North American revenue declined 11%, primarily due to a decrease in the DTC business and lower e-commerce sales.

Footwear Revenue Decline

Footwear revenue declined by 17%, partly due to ongoing proactive portfolio management efforts.

APAC Revenue Decrease

APAC revenue was down 27% or 26% when adjusted for currency fluctuations, primarily due to a competitive environment.

Company Guidance

During the fourth quarter of fiscal 2025, Under Armour exceeded its outlook, achieving a gross margin increase of 170 basis points to 46.7%, driven by 150 basis points from lower product and freight costs and 80 basis points from reduced discounting and promotions. Despite an 11% decline in revenue to $1.2 billion, the company exceeded or met its initial fiscal year outlook for every line item. North American revenue decreased by 11%, primarily due to lower e-commerce sales, while EMEA's revenue decreased by 2%, staying flat on a currency-neutral basis. APAC experienced a 27% decline in revenue due to a competitive environment, and Latin America's revenue fell by 10%, though it rose by 3% on a currency-neutral basis. Under Armour's SG&A expenses increased by 1% to $607 million in the quarter, with adjusted SG&A up 7% due to higher marketing and incentive compensation expenses. The company reported an operating loss of $72 million, with an adjusted operating loss of $36 million. Looking forward, Under Armour plans to navigate tariff challenges and expects first-quarter fiscal 2026 revenue to decline by 4% to 5%, with a gross margin expansion of 40 to 60 basis points and adjusted operating income of $20 million to $30 million.

Under Armour Financial Statement Overview

Summary

Under Armour faces challenges with declining revenue, profitability, and cash flow in the latest period. Despite these issues, the company maintains a stable balance sheet with manageable leverage. Past performance shows potential for improvement if operational efficiencies and revenue growth can be achieved.

Income Statement

Positive

Under Armour's TTM (Trailing-Twelve-Months) revenue has decreased significantly compared to the previous year. The company currently has a negative net profit margin and EBIT margin, indicating operational challenges. However, its gross profit margin remains positive, demonstrating some ability to manage cost of goods sold. In the past, the company showed positive EBIT and net income, reflecting potential for recovery if cost controls improve.

Balance Sheet

Positive

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has slightly declined, indicating increased liabilities relative to assets. Historically, Under Armour has maintained a reasonable return on equity, although recent losses present a challenge to equity returns.

Cash Flow

Neutral

The TTM (Trailing-Twelve-Months) cash flow reveals negative free cash flow, reflecting cash management issues. Operating cash flow is low compared to net income, pointing to potential inefficiencies. Historically, the company has generated positive operating cash flow, suggesting the ability to recover cash flow performance.

Breakdown	TTM	Mar 2024	Mar 2023	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	5.32B	5.70B	5.90B	5.68B	4.47B	5.27B
Gross Profit	2.52B	2.63B	2.64B	2.86B	2.16B	2.47B
EBITDA	87.56M	372.34M	399.04M	667.95M	153.15M	423.19M
Net Income	-134.07M	232.04M	374.46M	360.06M	-549.18M	92.14M
Balance Sheet
Total Assets	4.63B	4.76B	4.86B	4.99B	5.03B	4.84B
Cash, Cash Equivalents and Short-Term Investments	726.88M	858.69M	711.91M	1.67B	1.52B	788.07M
Total Debt	1.31B	1.44B	1.52B	1.50B	2.01B	1.30B
Total Liabilities	2.65B	2.61B	2.86B	2.90B	3.35B	2.69B
Stockholders Equity	1.98B	2.15B	2.00B	2.09B	1.68B	2.15B
Cash Flow
Free Cash Flow	-153.66M	203.64M	-197.71M	595.07M	120.57M	363.23M
Operating Cash Flow	3.73M	353.97M	-9.91M	664.83M	212.86M	509.03M
Investing Cash Flow	-116.73M	-105.33M	-152.80M	-68.35M	66.34M	-147.11M
Financing Cash Flow	-158.16M	-78.69M	-126.38M	-418.74M	436.85M	-137.07M

Under Armour Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.42

Price Trends

50DMA

6.23

Positive

100DMA

6.10

Positive

200DMA

7.05

Negative

Market Momentum

MACD

0.11

Positive

RSI

49.13

Neutral

STOCH

25.68

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Negative. The current price of 6.42 is below the 20-day moving average (MA) of 6.48, above the 50-day MA of 6.23, and below the 200-day MA of 7.05, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 25.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UA.

Under Armour Risk Analysis

Under Armour disclosed 36 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZGN	76 Outperform	$3.62B	26.76	8.89%	1.53%	2.26%	-37.52%
KTB	71 Outperform	$3.76B	16.56	56.32%	3.08%	1.19%	3.19%
COLM	67 Neutral	$3.48B	16.24	12.34%	1.89%	-1.69%	-4.01%
Sector *	63 Neutral	$16.82B	11.32	-7.02%	2.91%	1.72%	-24.85%
UA	62 Neutral	$2.83B	―	-9.95%	―	-7.47%	-131.70%
HBI	49 Neutral	$1.67B	―	-23.24%	―	-33.72%	-892.32%
VFC	49 Neutral	$4.81B	―	-2.39%	2.92%	-7.52%	94.28%

* Consumer Cyclical Sector Average

Performance Comparison

Under Armour

6.42

0.04

0.63%

COLM

Columbia Sportswear

61.45

-15.05

-19.67%

HBI

Hanesbrands

4.62

-0.42

-8.33%

VFC

12.33

-0.72

-5.52%

KTB

Kontoor Brands

67.60

3.44

5.36%

ZGN

Ermenegildo Zegna

8.87

-1.97

-18.17%

Under Armour Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Under Armour Appoints New Board Members for Growth

Positive

Apr 15, 2025

On April 15, 2025, Under Armour announced the election of Dawn N. Fitzpatrick, Eugene D. Smith, and Robert J. Sweeney to its Board of Directors, with their roles effective immediately. The appointments are expected to strengthen Under Armour’s strategic direction, leveraging Fitzpatrick’s financial expertise, Smith’s sports management experience, and Sweeney’s retail investment background. These additions aim to enhance Under Armour’s value creation for athletes, customers, and shareholders, as the company continues to navigate its growth and market positioning.

Spark’s Take on UA Stock

According to Spark, TipRanks’ AI Analyst, UA is a Neutral.

Under Armour’s stock currently faces significant challenges, primarily due to declining financial performance and technical indicators pointing to a bearish trend. The improved outlook and strategic initiatives provide some optimism, but profitability issues and market competition weigh heavily on the stock’s attractiveness. The absence of a dividend yield and negative valuation metrics further contribute to a lower overall score.

To see Spark’s full report on UA stock, click here.

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.Date of analysis: May 01, 2025