Under Armour (NYSE:UA) Issues Quarterly Earnings Results

Under Armour (NYSE:UA) posted its quarterly earnings data on Friday. The company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.11, Zacks reports. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.16 billion. Under Armour had a negative net margin of 1.74% and a positive return on equity of 1.27%. Under Armour updated its FY 2026 guidance to 0.10-0.110 EPS.

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

• Under Armour says its operational turnaround is gaining traction after SKU rationalization and targeted leadership moves (e.g., Kara Trent, Adam Peake, Eric Liedtke), and adjusted results beat expectations with a modest upward revision to full?year adjusted operating income.
• GAAP results were materially depressed by one?time items — a $99M litigation reserve, $75M of Q3 restructuring (and $224M total to date) and a $247M non?cash valuation allowance on U.S. deferred tax assets — producing a $1.01 diluted loss per share despite positive adjusted EPS.
• Footwear remains the weakest category with year?to?date sales down about 14% and Q3 footwear revenue down 12%, prompting assortment cuts and a reset that the company expects to stabilize in fiscal 2027.
• Management highlights improving product and brand momentum — stronger HeatGear/ColdGear, Icon Fleece and women’s franchises, plus early successful launches (Velociti Elite 3, Assert 11, HB Low, Sola, Arc 96) showing higher ASPs, better sell?through and more favorable wholesale engagement.
• Liquidity and working capital: inventory declined ~2% to just over $1B, cash of $465M plus $600M in restricted investments earmarked for upcoming debt, and no amounts outstanding on the $1.1B revolver after a ~$200M paydown, providing runway but with restrictions on the $600M.

Under Armour Stock Up 19.7%

Shares of NYSE UA opened at $7.36 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.69 and a quick ratio of 1.10. The company has a 50-day moving average price of $5.15 and a 200-day moving average price of $5.01. The stock has a market capitalization of $3.16 billion, a P/E ratio of -35.05 and a beta of 1.74. Under Armour has a 1 year low of $3.95 and a 1 year high of $7.37.

Key Headlines Impacting Under Armour

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Q3 earnings beat and revenue beat — Under Armour posted adjusted EPS of $0.09 vs. a $0.02 loss expected and revenue of $1.33B vs. $1.16B expected, driven by holiday stabilization and product assortment simplification. MarketBeat Earnings
• Positive Sentiment: Raised FY?2026 guidance — UA updated FY26 EPS guidance to $0.10–$0.11 and issued revenue guidance around $5.0B, above consensus, signaling management confidence in the turnaround. Proactive Investors
• Positive Sentiment: Cost controls and restructuring driving profit recovery — Management credited aggressive cost cuts and simplification under CEO Kevin Plank for offsetting weaker demand and producing a surprise profit. Proactive Investors
• Neutral Sentiment: Company released formal Q3 results and investor materials — Press release, earnings PDF and conference call are available for deeper detail on GAAP figures and segment performance. Press Release / Report
• Negative Sentiment: Sales still down and margin pressure from tariffs and weak markets — Revenue declined year?over?year (albeit less than feared), and management warned of continued tariff pressure and soft demand in North America and Asia?Pacific that weigh on margins. WSJ
• Negative Sentiment: Company still posts a negative GAAP net margin — Despite a profit on an adjusted basis and positive ROE, Under Armour’s reported net margin remains negative, underscoring that recovery is partial and execution risk remains. Reuters

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Under Armour in a research note on Monday, December 29th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company currently has a consensus rating of “Sell”.

Insiders Place Their Bets

In related news, major shareholder V Prem Et Al Watsa purchased 13,182,469 shares of the business’s stock in a transaction on Tuesday, December 30th. The stock was acquired at an average price of $5.12 per share, for a total transaction of $67,494,241.28. Following the purchase, the insider owned 41,958,923 shares of the company’s stock, valued at approximately $214,829,685.76. This trade represents a 45.81% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have bought 42,448,155 shares of company stock valued at $219,067,338. 15.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Under Armour

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Millennium Management LLC raised its stake in Under Armour by 153.7% in the 3rd quarter. Millennium Management LLC now owns 2,346,929 shares of the company’s stock valued at $11,336,000 after acquiring an additional 1,421,981 shares during the period. Corient Private Wealth LLC raised its position in shares of Under Armour by 99.8% in the second quarter. Corient Private Wealth LLC now owns 2,005,844 shares of the company’s stock valued at $13,018,000 after purchasing an additional 1,002,037 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Under Armour by 34.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 388,256 shares of the company’s stock valued at $2,310,000 after buying an additional 99,402 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Under Armour by 54.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 359,077 shares of the company’s stock valued at $2,330,000 after buying an additional 127,152 shares in the last quarter. Finally, Squarepoint Ops LLC boosted its holdings in Under Armour by 1,005.8% in the 3rd quarter. Squarepoint Ops LLC now owns 307,687 shares of the company’s stock worth $1,486,000 after buying an additional 279,863 shares during the period. Hedge funds and other institutional investors own 36.35% of the company’s stock.

Under Armour Company Profile

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.