Under Armour (NYSE:UA) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Under Armour (NYSE:UA) issued its quarterly earnings results on Tuesday. The company reported ($0.03) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.01), Zacks reports. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion. Under Armour had a negative net margin of 10.44% and a positive return on equity of 1.48%. Under Armour updated its FY 2027 guidance to 0.080-0.120 EPS and its Q1 2027 guidance to 0.000-0.020 EPS.

Here are the key takeaways from Under Armour’s conference call:

• Under Armour said fiscal 2026 revenue fell 4% to $5.0 billion, with North America down 8% while EMEA rose 9% and APAC declined 5%. Fourth-quarter revenue was down 1%, reflecting continued pressure in North America but growth in international regions.
• Management is guiding fiscal 2027 to stabilization, with revenue expected to be down slightly overall but roughly flat excluding the exit of the Curry Brand. The company said North America should be down low single digits, while EMEA and APAC are expected to grow low single digits.
• Gross margin is expected to improve by about 220 to 270 basis points in fiscal 2027, helped by a potential tariff refund, pricing actions, lower discounting, and a better channel mix. Management also expects the first quarter to benefit materially from the tariff refund timing.
• Under Armour highlighted a continued shift toward a more premium, focused product lineup, including new offerings like the Bouncy Cotton Tee and broader innovation in performance apparel and footwear. The company has reduced SKUs by 25% over the past two years and plans further assortment cuts to improve margins and simplify execution.
• Despite the strategic reset, management acknowledged that profitability is not improving fast enough and that fiscal 2027 will still involve elevated costs, including about $305 million of total transformation spend. Adjusted operating income is projected at $140 million to $160 million, while the company also expects a high tax rate and ongoing tariff and geopolitical pressure.

Under Armour Stock Performance

Shares of UA traded up $0.05 during trading hours on Wednesday, hitting $4.95. The company had a trading volume of 908,834 shares, compared to its average volume of 4,059,994. The business has a fifty day moving average of $6.07 and a 200-day moving average of $5.55. The company has a quick ratio of 0.92, a current ratio of 1.43 and a debt-to-equity ratio of 0.27. The firm has a market cap of $2.11 billion, a price-to-earnings ratio of -4.05 and a beta of 1.65. Under Armour has a 12 month low of $3.95 and a 12 month high of $7.91.

Analysts Set New Price Targets

UA has been the subject of several recent analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Under Armour in a report on Friday. Robert W. Baird set a $5.50 price target on shares of Under Armour in a research report on Wednesday. Zacks Research upgraded shares of Under Armour to a “hold” rating in a research note on Wednesday, March 11th. Finally, Citigroup downgraded shares of Under Armour from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 10th. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Sell” and an average target price of $5.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Symmetry Peak Management LLC acquired a new stake in Under Armour during the fourth quarter worth approximately $48,000. Quarry LP acquired a new position in shares of Under Armour in the third quarter valued at approximately $53,000. Mercer Global Advisors Inc. ADV bought a new position in shares of Under Armour during the fourth quarter worth approximately $54,000. Dynamic Technology Lab Private Ltd bought a new position in shares of Under Armour during the third quarter worth approximately $62,000. Finally, Cerity Partners LLC acquired a new stake in Under Armour during the 2nd quarter worth approximately $65,000. Institutional investors and hedge funds own 36.35% of the company’s stock.

About Under Armour

Under Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company’s product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.