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Under Armour
(NYSE:UAA)
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Rating:45Neutral
Price Target:
$5.00
▼(-2.91% Downside)
Action:Reiterated
Date:09/30/26
The score is held down primarily by weak financial performance (losses, negative operating/free cash flow, and higher leverage) and bearish technicals (price below key moving averages with negative MACD). Earnings-call takeaways add some support via better cost control, maintained profitability targets, and an expectation of free-cash-flow positivity, but this is tempered by a revenue guidance cut and near-term demand weakness. Valuation provides only limited offset given the negative P/E and no dividend yield data.
Positive Factors
SKU Rationalization
A smaller, more focused assortment can concentrate investment on higher-potential franchises and improve productivity per style. If executed effectively, SKU rationalization may reduce complexity, sharpen product selection, and support better inventory and margin discipline over coming quarters.
Negative Factors
Persistent Revenue Contraction
The guidance reduction and sharper expected second-quarter decline indicate that demand weakness is broad enough to affect the company’s planning horizon. Sustained top-line pressure can reduce operating leverage, limit brand investment, and make the profitability target more dependent on cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
SKU Rationalization
A smaller, more focused assortment can concentrate investment on higher-potential franchises and improve productivity per style. If executed effectively, SKU rationalization may reduce complexity, sharpen product selection, and support better inventory and margin discipline over coming quarters.
Read all positive factors
Under Armour (UAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.99B
Dividend YieldN/A
Average Volume (3M)9.86M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-3.23%
EPS Growth-595.55%
CountryUS
Employees14,100
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-1.15
Shares Outstanding188,839,510
10 Day Avg. Volume8,231,000
30 Day Avg. Volume9,864,142
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.75
Price to Sales (P/S)0.50
P/FCF Ratio-15.23
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit1.61
Enterprise Value/Ebitda-158.24
Forecast
1Y Price Target
$5.75Price Target Upside11.65% Upside
Rating ConsensusHold
Number of Analyst Covering17
EPS Forecast (FY)0.11
Revenue Forecast (FY)$4.73B
Under Armour Business Overview & Revenue Model
Company Description
Under Armour, Inc. (UAA) specializes in the design, promotion, and distribution of athletic clothing, footwear, and accessories for men, women, and young people. Its apparel collection includes various fits such as compression, fitted, and loose s...
How the Company Makes Money
Under Armour makes money primarily by selling branded athletic products—apparel, footwear, and accessories—through two main routes: (1) wholesale distribution and (2) direct-to-consumer (DTC) sales. Wholesale revenue comes from selling merchandise...
Under Armour Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear operational progress (cost discipline, SKU rationalization, inventory control, product wins like the Bouncy Tee, and an adjusted operating income beat) contrasted with a deteriorating top-line backdrop driven by softer consumer demand, promotional market dynamics, China execution issues and footwear/category weakness. Management lowered revenue guidance but maintained profitability targets by cutting and reallocating spend, relying in part on non-recurring tariff refunds. Overall, strengths in execution and product momentum are offset by meaningful near-term demand risks.Positive Updates
Adjusted Operating Income Beat
Adjusted operating income was $52 million in Q1, exceeding guidance of $30–$40 million, demonstrating improved cost control and agility despite softer revenue.
Negative Updates
Top-Line Weakness and Guidance Cut
Company lowered FY revenue outlook to a mid-single-digit decline (from prior 'slightly down'), and Q2 revenue is expected to decline high-single-digits, signaling materially weaker near-term demand.
Read all updates
Q1-2027 Updates
Positive
Negative
Adjusted Operating Income Beat
Adjusted operating income was $52 million in Q1, exceeding guidance of $30–$40 million, demonstrating improved cost control and agility despite softer revenue.
Read all positive updates
Company Guidance
Under Armour updated fiscal‑2027 guidance after a Q1 in which revenue fell 3% to $1.1B (North America −9%, EMEA +12%/+10% cc, APAC −7%/−10% cc, Latin America +8%/+1% cc), wholesale −2%, DTC −6% (stores −3%, e‑commerce −12%), apparel −2%, footwear −8% and accessories −4%; Q1 gross margin rose 590 bps to 54.1% (driven by 640 bps of IEEPA tariff refunds and 50 bps supply‑chain benefits, partly offset by 50 bps FX, 30 bps mix and 20 bps pricing headwinds), SG&A was $543M (+2%, +4% ex $2M transformation), operating income $47M (adjusted $52M vs prior outlook $30–40M), GAAP EPS breakeven (adjusted EPS $0.05), ending inventory $1.1B (−3% YoY), cash $396M and $200M drawn on the revolver; the company now expects full‑year revenue to decline mid‑single‑digits but is maintaining adjusted operating income of $140–160M, gross‑margin expansion of ~220–270 bps (including ~150 bps IEEPA benefit), adjusted SG&A to decline low‑single‑digits, assumes a 10% tariff, guides Q2 revenue down high‑single‑digits with Q2 adjusted OI $10–20M and adjusted diluted loss per share $0.01–0.03, cited Q1 restructuring/transform charges of $6M ( $266M incurred to date — $116M cash/$150M noncash; ~$305M expected, substantially complete by 12/31), targets further SKU cuts (another 25% over 18 months, ~40%+ total by end‑’28) and expects to be free‑cash‑flow positive this year.Under Armour Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
48
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.95B | 4.97B | 5.17B | 5.69B | 5.86B | 5.69B |
| Gross Profit | 2.32B | 2.26B | 2.47B | 2.63B | 2.60B | 2.88B |
| EBITDA | -23.62M | -60.98M | -62.27M | 404.66M | 418.26M | 576.28M |
| Net Income | -492.49M | -495.64M | -201.27M | 232.04M | 374.46M | 360.06M |
Balance Sheet | ||||||
| Total Assets | 4.10B | 4.42B | 4.30B | 4.76B | 4.83B | 4.45B |
| Cash, Cash Equivalents and Short-Term Investments | 395.98M | 309.17M | 501.36M | 858.69M | 710.93M | 1.01B |
| Total Debt | 1.38B | 1.94B | 1.30B | 1.44B | 1.52B | 1.48B |
| Total Liabilities | 2.67B | 3.00B | 2.41B | 2.61B | 2.86B | 2.72B |
| Stockholders Equity | 1.43B | 1.41B | 1.89B | 2.15B | 1.97B | 1.73B |
Cash Flow | ||||||
| Free Cash Flow | -81.12M | -162.16M | -228.00M | 203.64M | -197.71M | 595.07M |
| Operating Cash Flow | -14.80M | -75.09M | -59.32M | 353.97M | -9.91M | 664.83M |
| Investing Cash Flow | -68.05M | -688.81M | -126.35M | -105.33M | -152.80M | -68.35M |
| Financing Cash Flow | -433.74M | 560.63M | -180.81M | -78.69M | -126.38M | -418.74M |
Under Armour Technical Analysis
Negative
5.15
Price Trends
4.93
Negative
5.66
Negative
5.97
Negative
Market Momentum
-0.05
Negative
43.14
Neutral
22.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAA, the sentiment is Negative. The current price of 5.15 is above the 20-day moving average (MA) of 4.70, above the 50-day MA of 4.93, and below the 200-day MA of 5.97, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UAA.
Under Armour Risk Analysis
Under Armour disclosed 35 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.32B | 53.83 | 14.37% | ― | 24.67% | 741.89% | |
72 Outperform | $1.22B | 8.86 | 7.53% | 1.41% | -8.74% | -22.98% | |
67 Neutral | $3.05B | 15.42 | 12.58% | 2.02% | -0.22% | -2.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.99B | -23.47 | -3.49% | 0.18% | 1.64% | -140.84% | |
51 Neutral | $6.74B | 24.50 | 15.95% | 2.10% | -0.16% | 212.77% | |
45 Neutral | $1.99B | -3.96 | -32.12% | ― | -3.23% | -595.55% |
* Consumer Cyclical Sector Average
UAA
Under Armour
4.88
0.03
0.62%
COLM
Columbia Sportswear
62.07
8.64
16.17%
GIII
G-III Apparel Group
29.78
1.72
6.13%
PVH
PVH
84.26
-2.23
-2.58%
VFC
VF
17.48
1.94
12.51%
FIGS
FIGS
20.46
12.18
147.10%
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.