Under Armour posts surprise Q3 adjusted profit; sees smaller FY sales drop

Overview

• Athletic apparel maker's fiscal Q3 revenue fell 5%, less than analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations of a loss

• Company expects greater stability ahead as it builds global brand momentum

Outlook

• Under Armour expects fiscal 2026 revenue to decline approximately 4% vs prior view of a 4-5% drop

• Company anticipates an 8% revenue decline in North America for fiscal 2026

• Under Armour projects fiscal 2026 adjusted EPS of $0.10 to $0.11 vs prior view of $0.03 to $0.05

Result Drivers

• NORTH AMERICA CHALLENGES - Revenue in North America fell 10% as the company navigated a challenging business reset phase

• GROSS MARGIN PRESSURE - Gross margin declined 310 basis points due to higher tariffs and pricing headwinds, partially offset by foreign exchange gains

• INTERNATIONAL PERFORMANCE - EMEA and Latin America saw revenue growth, while Asia-Pacific experienced a decline

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", 20 "hold" and 2 "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 $5.35, about 14.8% below its February 5 closing price of $6.28

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nPn3dP2wca

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