Under Armour Q4 adjusted EPS misses estimates as North America sales fall

Overview

• US sportswear maker's fiscal Q4 revenue fell 1% as North America sales declined

• Adjusted EPS for fiscal Q4 missed analyst expectations

• Company cites restructuring, higher tariffs, and cost pressures for Q4 results

Outlook

• Under Armour expects fiscal 2027 revenue to decline slightly year over year

• Company sees fiscal 2027 gross margin increasing 220 to 270 basis points versus prior year

• Under Armour forecasts fiscal 2027 adjusted diluted EPS of $0.08 to $0.12

Result Drivers

• NORTH AMERICA WEAKNESS - Q4 revenue decline was driven by a 7% drop in North America sales, while international revenue grew

• GROSS MARGIN PRESSURE - Gross margin declined 470 basis points to 42.0%, primarily due to higher tariffs, higher product costs, pricing headwinds, and unfavorable regional mix

• LOWER SG&A EXPENSES - SG&A expenses decreased 15% due to lower marketing spend from timing shifts, reduced incentive compensation, and expense management

Company press release: ID:nPnbVMQtva

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 18 "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 $8.00, about 32% above its May 11 closing price of $6.06

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 33 three months ago

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