Under Armour (NYSE:UA) Announces Earnings Results

Under Armour (NYSE:UA) posted its quarterly earnings results on Friday. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.03, Zacks reports. Under Armour had a positive return on equity of 3.01% and a negative net margin of 9.98%.The business had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.11 billion. Under Armour updated its Q2 2027 guidance to -0.030–0.010 EPS and its FY 2027 guidance to 0.080-0.120 EPS.

Here are the key takeaways from Under Armour’s conference call:

• Fiscal 2027 revenue outlook was lowered to a mid-single-digit decline, reflecting softer consumer demand and increased promotional activity, particularly in North America and Asia Pacific. Second-quarter revenue is expected to fall at a high-single-digit rate.
• Under Armour maintained its $140 million–$160 million adjusted operating income outlook despite the weaker sales forecast, supported by tighter expense management, lower planned SG&A, and first-quarter adjusted operating income of $52 million, above guidance.
• The company reported gross margin expansion to 54.1% in the first quarter and continues to expect 220–270 basis points of full-year expansion, while inventory declined 3% to $1.1 billion, broadly in line with revenue.
• Management is pursuing a substantial assortment simplification, targeting an additional 25% SKU reduction over the next 18 months after already cutting the Fall/Winter 2026 assortment by 25%. The strategy is to concentrate investment on higher-potential franchises, reduce discount dependence, and improve product productivity.
• Management highlighted early product and brand momentum, including the Bouncy Tee exceeding expectations at its full $65 price, continued strength in HeatGear and Velociti, and plans to make marketing more focused and measurable rather than simply increasing spending.

Under Armour Price Performance

Under Armour stock traded down $0.34 during trading hours on Friday, hitting $5.92. 5,608,344 shares of the company traded hands, compared to its average volume of 2,544,030. The firm has a market cap of $2.53 billion, a P/E ratio of -5.11 and a beta of 1.59. The company has a quick ratio of 1.08, a current ratio of 1.62 and a debt-to-equity ratio of 0.42. The firm’s 50-day simple moving average is $6.24 and its two-hundred day simple moving average is $6.20. Under Armour has a 1-year low of $3.95 and a 1-year high of $7.91.

Insider Buying and Selling at Under Armour

In related news, major shareholder V Prem Et Al Watsa purchased 739,521 shares of Under Armour stock in a transaction dated Wednesday, May 13th. The stock was bought at an average cost of $4.97 per share, with a total value of $3,675,419.37. Following the purchase, the insider owned 44,179,116 shares in the company, valued at approximately $219,570,206.52. The trade was a 1.70% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last ninety days, insiders have purchased 1,178,344 shares of company stock valued at $5,865,147. Corporate insiders own 15.60% of the company’s stock.

Institutional Investors Weigh In On Under Armour

A number of institutional investors have recently added to or reduced their stakes in UA. Millennium Management LLC increased its position in shares of Under Armour by 153.7% during the 3rd quarter. Millennium Management LLC now owns 2,346,929 shares of the company’s stock valued at $11,336,000 after purchasing an additional 1,421,981 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Under Armour by 99.8% in the second quarter. Corient Private Wealth LLC now owns 2,005,844 shares of the company’s stock valued at $13,018,000 after buying an additional 1,002,037 shares during the period. Quinn Opportunity Partners LLC boosted its stake in Under Armour by 97.9% during the fourth quarter. Quinn Opportunity Partners LLC now owns 1,425,000 shares of the company’s stock valued at $6,840,000 after buying an additional 705,000 shares in the last quarter. Invesco Ltd. boosted its stake in Under Armour by 104.9% during the fourth quarter. Invesco Ltd. now owns 1,003,496 shares of the company’s stock valued at $4,817,000 after buying an additional 513,662 shares in the last quarter. Finally, Picton Mahoney Asset Management acquired a new position in Under Armour during the fourth quarter worth about $3,999,000. 36.35% of the stock is currently owned by institutional investors and hedge funds.

More Under Armour News

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Under Armour reported fiscal first-quarter adjusted EPS of $0.05, exceeding the $0.02 analyst consensus and marking a small profit amid challenging market conditions. Under Armour slashes revenue outlook as fiscal first quarter sales decline
• Positive Sentiment: Management maintained its full-year fiscal 2027 profitability outlook, with EPS guidance of $0.08 to $0.12, above the currently cited analyst consensus of $0.00. Under Armour Reports First Quarter Fiscal 2027 Results
• Neutral Sentiment: The company issued second-quarter fiscal 2027 EPS guidance of negative $0.03 to negative $0.01, below the $0.05 consensus estimate, while its full-year earnings outlook remains intact. Under Armour quarterly earnings data
• Negative Sentiment: Fiscal first-quarter revenue was approximately $1.10 billion, slightly below the $1.11 billion estimate, as soft consumer demand weighed on sales in North America and Asia-Pacific. Under Armour Posts Lower Revenue on Soft Demand
• Negative Sentiment: Under Armour cut its revenue expectations for fiscal 2027 and warned of a steeper annual sales decline. The weaker top-line outlook and below-consensus second-quarter earnings guidance outweighed the quarterly EPS beat, pressuring the stock. Under Armour Revenue Expectations Update

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Under Armour in a research note on Wednesday. Robert W. Baird set a $5.50 price target on shares of Under Armour in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company 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.