Under Armour Inc - Class C NYSE:UA Price, Chart, News & Insight

NYSE:UA

Under Armour Stock Drops 2.7% as Weaker Demand Forces Revenue Outlook Cut

Under Armour (NYSE: UA, UAA) shares fell about 2.7% Friday after the sportswear company reported fiscal first-quarter 2027 results and sharply lowered its full-year revenue expectations, as weak demand in North America and Asia-Pacific overshadowed substantial gross-margin improvement and an unchanged profitability outlook.

Fiscal Q1 revenue declined 3% year over year to $1.1 billion, or 4% on a constant-currency basis. North America remained the largest pressure point, with revenue falling 9% to $610 million.

International revenue increased 5% to $490 million, but performance varied considerably by region. EMEA grew 12%, while Asia-Pacific declined 7%.

Footwear and E-Commerce Show Particular Weakness

The details of the quarter reinforced concerns about underlying consumer demand.

Direct-to-consumer revenue fell 6% to $437 million, including a 12% decline in e-commerce. Wholesale revenue decreased 2%.

Footwear was particularly weak, with revenue falling 8% to $245 million. Apparel declined 2% to $734 million, while accessories decreased 4%.

Despite the revenue weakness, profitability showed meaningful improvement. Gross margin expanded 590 basis points to 54.1%, helped substantially by refunds related to tariff costs recorded in fiscal 2026.

Adjusted operating income reached $52 million, while adjusted net income was $21 million, or $0.05 per share.

Under Armour Cuts Fiscal 2027 Revenue Outlook

The major negative catalyst for UA shares was management's revised sales forecast.

Under Armour now expects fiscal 2027 revenue to decline at a mid-single-digit percentage rate, substantially worse than its previous expectation for only a slight decline.

North American revenue is now expected to fall by a mid-single-digit percentage, compared with the previous low-single-digit decline forecast.

The company also reversed its growth expectations for two international regions. Both Asia-Pacific and EMEA are now expected to record low-single-digit revenue declines; previously, Under Armour had forecast low-single-digit growth in both markets.

Management cited softer demand, particularly in North America and Asia-Pacific.

Profit Guidance Remains Intact

Importantly, Under Armour did not reduce its adjusted profitability forecast.

Adjusted operating income is still expected at $140 million to $160 million, while adjusted EPS guidance remains $0.08 to $0.12.

The company plans to offset weaker sales through more aggressive expense management. SG&A is now expected to decline at a high-single-digit rate, compared with the previous expectation for a low-single-digit decrease.

Gross margin is still projected to expand by 220 to 270 basis points, although approximately 150 basis points of that improvement is expected to come from recovery of prior-year tariff costs.

Why Is UA Stock Down 2.7% Today?

The selloff appears primarily driven by the deterioration in Under Armour's revenue outlook rather than the current quarter's profitability.

A shift from a "slight" full-year revenue decline to a mid-single-digit contraction represents a meaningful reduction in demand expectations. More concerningly, weakness is broadening beyond North America, with Asia-Pacific and EMEA forecasts moving from growth to contraction.

Maintaining adjusted profit guidance is positive, but investors may question the quality and sustainability of earnings if they increasingly depend on cost reductions while sales continue falling. Part of this year's margin improvement also comes from tariff refunds rather than underlying operating gains.

Under Armour's turnaround therefore faces a key test: management is succeeding in protecting profitability and reducing discounting, but Friday's 7% decline suggests investors want evidence that its strategy can eventually stabilize demand and return the brand to sustainable revenue growth.

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Global Finance News 08-07-26

Under Armour Tumbles 18% as Tariffs, Restructuring Costs, and Weak Outlook Weigh Heavily

May 12, 2026 | NYSE: UA

Under Armour is the day's worst earnings-driven performer, shedding 18% after reporting a full fiscal year of declining revenue, margin compression, and a fiscal 2027 outlook that offers little reason for near-term optimism.

Full-year fiscal 2026 revenue fell 4% to $5.0 billion, with North America — the core market — down 8% to $2.9 billion. International provided some offset, growing 4% in reported terms, but was essentially flat in constant currency. Footwear was the weakest category, declining 11% for the year. Gross margin contracted 240 basis points to 45.5%, pressured by higher tariffs, pricing headwinds, and unfavorable mix. The full-year net loss was $496 million, inflated by a $247 million valuation allowance on US deferred tax assets — a meaningful signal that management has limited near-term visibility into domestic profitability. Adjusted net income was a thin $50 million.

The restructuring program, originally expected to cost $255 million, has now crept to a projected $305 million total, with completion pushed to December 2026. That kind of cost overrun on a turnaround plan erodes investor confidence in management's ability to forecast and execute.

The fiscal 2027 outlook did little to help. Revenue is expected to decline again, albeit slightly. Gross margin improvement of 220 to 270 basis points is largely dependent on an assumed reversal of IEEPA tariff costs — a political and regulatory assumption rather than an operational achievement. Adjusted operating income of $140 to $160 million assumes roughly $70 million in tariff refunds materializing. Strip that out and the underlying earnings power looks very modest.

With North America still shrinking, the brand repositioning still underway, and profitability reliant on external factors outside management's control, the market's 18% verdict today reflects a company that has yet to give investors a clear reason to believe the worst is behind it.

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WS Investor 05-12-26

Under Armour stock steadies in premarket after Fairfax lifts stake to 16.1% in fresh buys

Under Armour stock steadies in premarket after Fairfax lifts stake to 16.1% in fresh buys - TechStock²

(ts2.tech)

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WS News 12-31-25

Under Armour Q2 FY2026 Results: Signs of Brand Momentum Amid Turnaround

Under Armour reported Q2 FY2026 revenue of $1.3 billion, down 5% year over year (6% lower on a currency-neutral basis). North America fell 8% to $792 million, while international revenue rose 2% to $551 million, supported by 12% growth in EMEA and 15% in Latin America, offset by a 14% decline in Asia-Pacific. Wholesale sales decreased 6% to $775 million, and direct-to-consumer declined 2% to $538 million, with eCommerce down 8%.

By category, apparel revenue slipped 1% to $936 million, footwear dropped 16% to $264 million, and accessories fell 3% to $113 million. Gross margin declined 250 basis points to 47.3%, affected by tariffs and an unfavorable mix, partly offset by pricing gains. SG&A expenses increased 12% to $582 million, largely due to higher marketing costs and the absence of a prior-year insurance recovery.

Operating income was $17 million, while adjusted operating income reached $53 million. The company posted a net loss of $19 million (diluted loss per share of $0.04); adjusted net income was $15 million (adjusted EPS $0.04).

Under Armour repurchased $25 million of Class C stock during the quarter, retiring 5.2 million shares, and has spent $115 million of its $500 million repurchase plan since May 2024.

CEO Kevin Plank said the quarter exceeded expectations and highlighted strengthening brand momentum in North America.

For FY2026, Under Armour expects revenue to decline 4–5%, with continued weakness in North America and Asia-Pacific, offset by growth in EMEA. Gross margin is projected to fall 190–210 basis points due to higher U.S. tariffs, while SG&A is expected to decline at a mid-teens rate (mid-single digits on an adjusted basis). Adjusted operating income is forecast between $90 million and $105 million, with adjusted EPS between $0.03 and $0.05.

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The Investor 11-06-25

Under Armour Reports Q4 and Fiscal 2025 Results, Offers Q1 FY2026 Outlook

Baltimore, May 13, 2025 – Under Armour, Inc. (NYSE: UAA, UA) released its unaudited financial results for the fourth quarter and fiscal year ended March 31, 2025, showing revenue declines but improvement in gross margins and progress in restructuring efforts. CEO Kevin Plank emphasized the company's ongoing strategic reset aimed at sustainable and profitable growth.

Fourth Quarter Fiscal 2025 Highlights
• Revenue: $1.18 billion, down 11% YoY (down 10% currency neutral)
o North America: $689 million (-11%)
o International: $489 million (-13%)
 Asia-Pacific: -27%
 EMEA: -2%
 Latin America: -10%
• Product Revenue: Apparel down 11%, Footwear down 17%, Accessories up 2%
• Channel Revenue:
o Wholesale down 10% to $768 million
o Direct-to-consumer down 15% to $386 million
o eCommerce down 27%
• Gross Margin: Improved by 170 bps to 46.7%
• Operating Loss: $72 million; adjusted loss was $36 million
• Net Loss: $67 million; adjusted net loss was $35 million
• Adjusted EPS: ($0.08)
• Inventory: Down 1% to $946 million
• Cash: $501 million, no outstanding borrowings

Full Year Fiscal 2025 Summary
• Revenue: $5.16 billion, down 9% (currency neutral)
o North America down 11%, International down 6%
o Footwear declined 13%; Apparel 9%
• Gross Margin: Improved 180 bps to 47.9%
• Operating Loss: $185 million; adjusted operating income was $198 million
• Net Loss: $201 million; adjusted net income $135 million
• Adjusted EPS: $0.31
• SG&A Expenses: Rose 8% to $2.6 billion, though adjusted SG&A fell 2%

Restructuring and Transformation Plan
• Under Armour recognized $89 million in charges under its Fiscal 2025 restructuring plan
o $55 million cash-related
o $34 million non-cash
• Additional charges expected in FY2026
Share Repurchase Program
• Repurchased $25 million in shares during Q4
• Total repurchases under the $500 million program (approved May 2024): $90 million (12.8 million shares)

Q1 Fiscal 2026 Outlook
• Revenue: Expected to decline 4–5% YoY
o North America down 4–5%, EMEA growth in high-single digits, Asia-Pacific decline in mid-teens
• Gross Margin: Projected to rise 40–60 bps YoY
• Operating Income: GAAP range of $5–15 million; adjusted range $20–30 million
• EPS: GAAP range of ($0.02)–$0.00; adjusted EPS between $0.01–$0.03

Store Count as of March 31, 2025
• North America: 195 doors (180 Factory House, 15 Brand House)
• International: 246 doors
• Total company-owned doors: 441 (up 1 from 2024)

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The Investor 05-13-25

Under Armour Appoints Three New Members to Its Board of Directors

Under Armour announced the appointment of Dawn N. Fitzpatrick, Eugene D. Smith, and Robert J. Sweeney to its Board of Directors, effective immediately. Board Chair Mohamed A. El-Erian highlighted the trio’s strategic value, citing their financial, operational, and intercollegiate sports expertise.

Dawn Fitzpatrick is the CEO and CIO of Soros Fund Management and formerly held senior roles at UBS. She also serves on the boards of Barclays and the Federal Reserve Bank of Dallas.

Gene Smith recently retired as Athletic Director at Ohio State University after nearly two decades. He is known for leadership roles in NCAA committees and is a former football player and coach at Notre Dame.

Rob Sweeney is President of Sycamore Partners and previously served as a partner at Goldman Sachs. He advised Under Armour on its 2005 IPO and is a former U.S. Navy officer.

The new appointments bring the total number of Under Armour board members to 12.

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The Investor 04-16-25

Under Armour, Inc. (NYSE: UAA, UA) reported its unaudited financial results for the third quarter of fiscal year 2025, which ended on December 31, 2024. The company highlighted a focus on brand strength, product strategy, and a shift to a category-led operating model as key drivers of its transformation.

Key financial results for the third quarter:
- Revenue decreased 6% to $1.4 billion (down 6% currency neutral).
- North America revenue decreased by 8% to $844 million.
- International revenue decreased 1% to $558 million (down 2% currency neutral), with notable regional variations:
- EMEA revenue up 5% (up 3% currency neutral).
- Asia-Pacific revenue down 5% (down 6% currency neutral).
- Latin America revenue down 16% (down 9% currency neutral).
- Wholesale revenue decreased 1% to $705 million.
- Direct-to-consumer revenue decreased by 9% to $673 million, with a 20% decline in eCommerce revenue due to planned decreases in promotional activities. eCommerce represented 39% of direct-to-consumer business for the quarter.
- Apparel revenue decreased by 5% to $966 million, footwear revenue declined by 9% to $301 million, and accessories revenue increased by 6% to $110 million.

Other financial metrics:
- Gross margin increased 240 basis points to 47.5%, driven by less discounting, lower product and freight costs, and favorable foreign currency impacts.
- Selling, general, and administrative (SG&A) expenses increased 6% to $638 million, primarily due to higher marketing investments. Adjusted SG&A expenses increased 5% to $606 million.
- Restructuring charges amounted to $14 million.
- Operating income was $14 million, and adjusted operating income was $60 million after excluding impairment, transformation, and restructuring charges.
- Net income was $1 million, while adjusted net income was $35 million.
- Diluted EPS was $0.00, with adjusted diluted EPS of $0.08.

Inventory remained flat at $1.1 billion. As of December 31, 2024, cash and cash equivalents totaled $727 million, with no borrowings under the company's $1.1 billion revolving credit facility.

Share repurchases:
- Under Armour repurchased $25 million of its Class C common stock in the third quarter, retiring 2.8 million shares.
- A total of 8.7 million shares were repurchased for $65 million as part of a three-year, $500 million program approved by the Board of Directors in May 2024.

CEO Kevin Plank expressed confidence in the company’s transformation and its focus on an updated marketing strategy, emphasizing a multi-year initiative to enhance brand visibility and athlete connections.

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European Investor 02-06-25

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Under Armour stock steadies in premarket after Fairfax lifts stake to 16.1% in fresh buys

NYSE:UA