Under Armour Q2 revenue beats; expects FY 2026 revenue to decrease 4% to 5%

Overview

• Under Armour fiscal Q2 revenue beats analyst expectations despite a 5% decline

• Adjusted EPS for fiscal Q2 beats analyst expectations

• Company repurchased $25 mln of Class C common stock, retiring 5.2 mln shares

Outlook

• Under Armour expects fiscal 2026 revenue to decrease 4% to 5%

• Gross margin expected to decline 190 to 210 basis points in fiscal 2026

• SG&A expenses projected to decrease by mid-teens percentage rate in fiscal 2026

Result Drivers

• NORTH AMERICAN DECLINE - North American revenue fell 8% due to weaker demand

• GROSS MARGIN PRESSURE - Gross margin declined by 250 basis points due to supply chain issues and increased tariffs

• SG&A EXPENSES INCREASE - SG&A expenses rose 12% due to higher marketing costs and absence of insurance recovery benefit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 21 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy."

• Wall Street's median 12-month price target for Under Armour Inc is $5.50, about 16.2% above its November 5 closing price of $4.61

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn2ds7n1a

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