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

Under Armour (NYSE:UA) announced its quarterly earnings data 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 during the quarter, compared to analysts’ expectations of $1.17 billion. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. 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 NYSE UA traded up $0.01 during mid-day trading on Thursday, hitting $5.00. 1,086,976 shares of the company were exchanged, compared to its average volume of 4,068,223. The company has a quick ratio of 0.92, a current ratio of 1.62 and a debt-to-equity ratio of 0.42. The stock has a 50 day simple moving average of $6.03 and a 200-day simple moving average of $5.55. Under Armour has a 1-year low of $3.95 and a 1-year high of $7.91. The firm has a market cap of $2.13 billion, a price-to-earnings ratio of -4.31 and a beta of 1.65.

Institutional Investors Weigh In On Under Armour

Several hedge funds have recently modified their holdings of UA. Twinbeech Capital LP lifted its holdings in Under Armour by 21.0% in the fourth quarter. Twinbeech Capital LP now owns 20,000 shares of the company’s stock valued at $96,000 after acquiring an additional 3,465 shares during the period. First Trust Advisors LP purchased a new position in Under Armour in the 4th quarter valued at approximately $87,000. CIBC Asset Management Inc purchased a new position in Under Armour in the 4th quarter valued at approximately $72,000. PharVision Advisers LLC acquired a new stake in Under Armour in the third quarter valued at $119,000. Finally, Polymer Capital Management HK LTD acquired a new stake in Under Armour in the third quarter valued at $129,000. 36.35% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently weighed in on UA. Zacks Research raised shares of Under Armour to a “hold” rating in a report on Wednesday, March 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Under Armour in a research report on Friday, May 8th. Citigroup cut shares of Under Armour from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 10th. Finally, Robert W. Baird set a $5.50 target price on shares of Under Armour in a report on Wednesday. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Under Armour currently has an average rating of “Sell” and an average price target of $5.50.

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.