Under Armour Past Earnings Performance
Past criteria checks 0/6
Under Armour's earnings have been declining at an average annual rate of -52.3%, while the Luxury industry saw earnings growing at 6.5% annually. Revenues have been declining at an average rate of 1.8% per year.
Key information
-52.28%
Earnings growth rate
-52.36%
EPS growth rate
| Luxury Industry Growth | 12.25% |
| Revenue growth rate | -1.77% |
| Return on equity | -35.04% |
| Net Margin | -9.98% |
| Last Earnings Update | 31 Mar 2026 |
Recent past performance updates
Recent updates
Seeking Alpha • May 13
Under Armour: Still Out Of Breath
Summary Under Armour, Inc. showed minimal turnaround progress in Q4. Concerningly, UA expects revenues to continue trending downward in FY2027. Underlying gross margin progress is offset by other weaknesses. I estimate UA stock to have -27% downside to $3.56. Read the full article on Seeking AlphaSeeking Alpha • Nov 07
Under Armour Trades As If The Turnaround Had Been Successful, Little Opportunity Now
Summary Under Armour, Inc.'s Q2 2025 results beat expectations, but revenue and profit remain down YoY, showing widespread challenges across categories, regions, and channels. Cost-cutting measures improved margins and operating income, but the brand's turnaround lacks substantial evidence, with sales and brand heat still struggling. The stock price already reflects significant operational improvements, leaving little upside potential and considerable downside risk if results don't materialize. Despite early positive signs, the turnaround is uncertain, leading to a Hold rating due to high valuation and ongoing challenges. Read the full article on Seeking AlphaSeeking Alpha • Sep 12
Under Armour: Return To Glory
Summary Under Armour's stock initially rose with founder Kevin Plank's return and FQ1 results but fell due to higher FY25 restructuring charges misunderstood by the market. The restructuring charges increased to $140-$160 million, causing a slight rise in operating loss, yet adjusted EPS remains on target. The stock's valuation at only 0.6x EV/S targets suggests substantial upside compared to peers like Lululemon and Nike, on top of the potential for the brand's resurgence. Read the full article on Seeking AlphaSeeking Alpha • Sep 06
Slow And Steady With Under Armour
Summary Under Armour's litigation expenses and management turnover have hindered growth, but with Kevin Plank's return as CEO, the company aims for a comeback. The focus must now be on improving product quality. Major litigation is resolved, reducing financial strain, but macroeconomic risks and consumer spending habits pose challenges to recovery. Under Armour's potential for long-term growth is promising, but a cautious, piecewise investment is advised due to economic uncertainties and market volatility. Read the full article on Seeking AlphaSeeking Alpha • Jul 01
Under Armour: Golden Opportunity
Summary Nike's collapse presents an opportunity for Under Armour to regain prominence in athletic apparel. Under Armour's founding CEO, Kevin Plank, has returned to lead the company after struggles due in part to post-Covid disruptions. The stock is incredibly cheap compared to Nike, despite favorable gross margins and similar growth issues. Read the full article on Seeking AlphaSeeking Alpha • Jun 16
The Bottom Fishing Club: Under Armour Left For Dead, Founder Again CEO
Summary Under Armour's stock peaked in 2015 above $50. It's now trading at all-time low valuations with price below $7. Founder Kevin Plank returns as CEO to lead a restructuring effort focusing on premium brand image and reduced discounting to outside retailers. The stock valuation may be one of the cheapest in its peer clothing/shoe segment of major retailers/manufacturers. Large cash holdings, free cash flow generation, and limited debt levels at low interest expense for years are other positives to consider. Read the full article on Seeking AlphaSeeking Alpha • May 16
A Complete Reset For Under Armour
Summary Under Armour, Inc., a sportswear company, has experienced a downturn in sales, particularly in North America, but international sales have shown growth. The company has reduced inventory and improved margins, and its balance sheet remains solid. Under Armour has announced a restructuring plan to address the decline in North American sales, which may pressure the top and bottom line in the near-term. However, if management executes the plan successfully, the stock could see a gradual improvement in performance. Read the full article on Seeking AlphaSeeking Alpha • Mar 15
Under Armour Stock: This Selloff Is Not An Opportunity To Buy
Summary Under Armour stock dropped 11% after the announcement that founder Kevin Plank would return as CEO. The $330 million loss in market cap seems to have been driven by fear and skepticism rather than a quantifiable deterioration in the company's prospects. Under Armour's challenges, including dependence on a struggling North American market and declining margins, have not improved much since 2019, making the stock unattractive. Read the full article on Seeking AlphaSeeking Alpha • Feb 09
Under Armour: Turnaround In Sight
Summary Under Armour, Inc. reported improved profits despite weak sales in the apparel sector. The athletic apparel company, along with the sector, has successfully reduced inventory levels and plans for further improvement during 2024. Under Armour's collaboration with Celanese Corporation on a new sustainable fiber showcases its commitment to innovation. Under Armour stock trades at only 12.5x EPS targets with plenty of upside potential. Read the full article on Seeking AlphaSeeking Alpha • Nov 22
Under Armour: Undervalued And Finally Turning Around
Summary Under Armour has struggled for the better part of a year. However, it shows signs of bottoming, due to a better technical and fundamental picture. Fundamentals in particular make the stock a compelling buy. The company is very cheap on a PEG basis, especially if earnings growth materializes as I think it will. Read the full article on Seeking AlphaSeeking Alpha • Oct 20
Under Armour: Partnership With Ripken Baseball May Accelerate The Growth
Summary Under Armour has announced a partnership with Ripken Baseball, which I believe can help UA to counter inflation's effects by acquiring a large customer base and improving its brand image. The company maintained net income growth in FY2022 with the help of supply chain benefits such as decreased ocean & air freight which were offset by persistent promotional activities. After comparing the forward P/E ratio of 12.89x and 13.94x with the sector median of 14.33x, we can say that the company is slightly undervalued. Read the full article on Seeking AlphaSeeking Alpha • Aug 08
Under Armour: Favorable Risk/Reward
Summary Under Armour, Inc. reported mixed fiscal Q1 results with the sector facing ongoing inventory issues and gross margins still under pressure. The company's focus on improving margins and resolving inventory issues is expected to boost profitability in the long term. Despite the challenges, Under Armour remains a deep value stock with potential for multiple expansion and profitable growth. Read the full article on Seeking AlphaSeeking Alpha • Jun 22
Finding Hope Amidst Under Armour's Challenging Outlook
Summary Under Armour's Q4 results and 2024 outlook are disappointing, with flat to slightly increased revenue expected. The key issue for the company is brand perception, as it struggles to compete with rivals like Nike and Lululemon. Despite these challenges, I upgrade the rating from "Sell" to "Hold" due to the potential for a slight growth in sales as consumers seek lower-priced brands. Read the full article on Seeking AlphaSeeking Alpha • Feb 09
Under Armour Q3 Results Commentary: Inventory Is Piling Up
Summary Under Armour's underlying performance in 3Q was weak despite posting good headline numbers. Inventory rises well ahead of management guidance and seems to be sticky. The gross profit margin crumbles on intensified promotional activity. Investment Thesis Under Armour (UA) (UAA) is a potential turnaround story that the market does not put too much hope on. There is scope for accelerating revenue growth, expanding margins, and boosting valuation multiples to get closer to peers. However, this requires significant effort from Under Armour to spark sales growth. Macro headwinds and intense competition could mean that we are several quarters away from such a potential recovery. Even though there could some pressure from inventory in the short term, Under Armour’s balance remains a source of strength given that it is cash rich and low on debt. This balance sheet should prove to be pivotal in the turnaround story and further extend the company’s share buyback program. I have a positive view of the stock over the medium term and my recommendation remains “Buy.” 3Q Sales Growth Spurred by Footwear Under Armour posted a 3% YoY increase in sales in 3Q2023 (the company switched to a fiscal year that ends March 31). The source of this strength was in footwear, where the category posted a 25% YoY increase in sales and accounted for 23% of sales in the quarter (compared to 19% in the prior year). Growth in footwear was broad-based and spanned multiple products. From a regional perspective, EMEA (Europe, Middle East & Africa) was the best-performing region with 32% YoY growth in sales. However, management pointed out that some shipments to EMEA in 3Q2023 were originally planned to be delivered in 4Q2023. Thus, it is very likely that EMEA brought forward some sales during the quarter. Overall, total sales growth of 3% YoY was slightly above the higher end of management’s guidance of 2% increase. Figure 1 Revenue Continues to Grow in Low Single Digits Calculated by Author using data from the company Figure 2 3Q2023 Sales by Category Calculated by Author using data from the company Gross Profit Margin Craters but Lower SG&A Drive Increase in Operating Profit In the 2Q2023 earnings call, management had guided for the 3Q2023 gross profit margin ((GPM)) to fall to the range of 44.7% to 45.2%; however, the actual result came in at 44.2%. Management indicated that the promotional activity was very high in the quarter and they do not expect this to ease over the next couple of quarters. Under Armour’s headline numbers were good because the company posted a strong decline in SG&A. However, the market took this negatively as the pressure on the GPM is likely to prove stickier than the sources of the SG&A improvement. Figure 4 shows how the TTM GPM has been deteriorating over the last 4 quarters. Figure 3 Summary of Results Calculated by Author using data from the company Figure 4 TTM Gross Profit Margin In Freefall Calculated by Author using data from the company Inventory Levels Spike for the Same Reasons as Decline in GPM Inventory is bloating at a much faster rate than the market was expecting and is not showing signs of a recovery in the near term. Inventory jumped by 50% YoY, ahead of the guidance of 40% YoY growth. I do not think this in itself is what spooked the market but rather the new guidance that inventory is likely to also grow by 50% YoY in 4Q2023. Previously management had guided for a 30% growth in inventory in 4Q2023, as it had anticipated the rise in inventory was seasonal. Promotional activity seems to be very strong and the company is feeling the pressure in both the GPM and inventory. Figure 5: Inventory Levels Calculated by Author using data from the company Management Guidance for FY2023 The company provided guidance for FY2023. Revenue growth is expected to be in the low single digits (unchanged). GPM is now expected to fall by 425 basis points, the higher end of the previous guidance. Operating profit guidance remains unchanged at $270 million to $290 million. Management upped its adjusted diluted FY2023 EPS guidance from $0.44 to $0.48 to $0.52 to $0.56. However, this better guidance for FY2023 was overshadowed by the gloomy picture that management painted about the dynamics of the industry. Key RisksSeeking Alpha • Feb 02
Under Armour Q3 Results Preview: Not Yet The Quarter That Will Change The Game
Summary Under Armour is actively taking action to spark sales growth but investors should not expect game-changing results in 3Q. New CEO appointment could be a strong catalyst for the stock. Stock trades at a significantly low EV/Sales multiple compared to leading peers. Under Armour is slated to announce 3Q2023 results on February 9, 2023. Investment Thesis Under Armour (UAA) is a potential turnaround story that the market does not put too much hope on. There is significant scope for accelerating revenue growth, expanding margins, and boosting valuation multiples to get closer to peers. Under Armour is a good brand but needs some work to make it great and spark sales growth. Management recently refined its target audience to be 16- to 20-year-old young athletes and plans on introducing “Live”—as a new product line. The company appointed a new CEO that will join on February 27, 2023. This change in management is likely to be the catalyst that is needed to revitalize the brand. The company saw significant pressure on the gross profit margin over the last 3 quarters largely due to external factors—which should start to unwind in the next fiscal year. Also, I do not believe that Under Armour should trade at such a steep discount on EV/Sales to both Nike (NKE) and Lululemon (LULU). I am not making a case for parity, but I do not see a reason for Under Armour's stock to trade at a fourth of these peers’ EV/Sales multiples. Finally, Under Armour has a strong balance sheet that is cash rich, low on debt, and free from excess inventory. This balance sheet should prove to be pivotal in the turnaround story and further extend the company’s share buyback program. I have a positive view of the stock over the medium term and my recommendation is to Buy. Key News Going into The Quarter Under Armour recently appointed Stephanie Linnartz as President, Chief Executive Officer, and member of its Board of Directors and she will assume her duties on February 27, 2023. Analysts have reacted positively to this announcement despite that Linnartz comes from a different industry. They argue that Linnartz has a lot of transferable skillsets in digital, customer experience, as well as loyalty programs. In addition, I believe that Linnartz could also represent the change that is needed for the brand to bolster its position in the women’s division. However, Linnartz will require time. She needs time to adjust to the new industry and come up with an elaborate new strategy. Thus, it will require several more quarters to get a chance to see her impact on the company’s performance. Investors should not expect any major development in this regard in the upcoming earnings results (Linnartz will not be on the upcoming earnings call). Inventory Levels Are Likely to Continue Trending Upwards in 3Q but Not in an Alarming Way Inventory levels for Under Armour have been rising over the last three quarters. However, this is an intended result of management actions. The company had previously been constraining inventory levels and now they are normalizing to optimal levels. In the previous earnings call, management highlighted that the inventory is mostly fresh and has very little aged stock. Moreover, the company anticipates that inventory will grow by 40% YoY in 3Q before closing the year at 30% YoY. Figure 1: Inventory Levels Calculated by Author using data from the company Sales Mix is Tilting Towards Footwear In 2Q2023 footwear was the star category, as Under Armour managed to post a 14% YoY growth in footwear. This strength in footwear was broad-based and reflected good performance from many products. Apparel dipped by 2% YoY as the company pointed at softness in the “Training” category. Accessories were down due to the drop in the sales of sports masks. Figure 2: Sales by Category in 2Q2023 Calculated by Author using data from the company Management Guidance for 3Q2023 The company provided guidance for 3Q2023 (Figure 3 below) during the earnings call of 2Q2023. The guidance highlights the same trends that were there in the previous two quarters of the year, which included muted sales growth and significant pressure on the gross profit margin. Two key contributors to the pressure on the gross profit margin have been rising freight costs and competitive pressure from higher-than-usual discounting by competitors. The company expects the negative impact of rising freight costs to abate in 4Q and act as a tailwind in FY2024. The guidance for EPS points to a high drop in profitability. I suspect this is amplified by a tax gain in the comparable quarter last year.Seeking Alpha • Jan 20
Under Armour Is Cheap For All The Right Reasons
Summary Under Armour's brand issues were apparent in 2016 if you knew where to look. The company still hasn't crossed over into fashion, and the sales prove it. I'm not convinced a new CEO used to running a hotel chain has the answers. Sometimes I wonder what goes through an elite athletes' mind when they return to the scene of past glory. Surely when Tiger Woods shows up to Augusta in the spring - it feels different. Right? While I'll never win a green jacket playing golf, if they handed them out for Under Armour (UA) (UAA) stock analysis - I'd have a few. In August 2016, Under Armour stock was trading around $40 per share when I penned the article titled The Race Under Armour Will Lose. Reading the article back - and the 240+ comments is almost surreal. Credit to the Seeking Alpha editors for allowing me to publish analysis that contained no actual financial data ... but did accurately predict why Under Armour's once high-flying stock would fall off a cliff. Later in 2016, I highlighted how Under Armour foolishly blew nearly $1 Billion on fitness apps in the article Under Armour's Billion Dollar Blunder. A few years later the company either sold or shuttered most of its app business units. Finally, in 2020 I wrote Under Armour Won't Stage A Comeback. Since writing that, Under Armour stock is up about 2%. The S&P 500 is up over 40% and Nike (NKE), the stock I recommended buying instead of Under Armour, is up over 40%. Now despite all this success analyzing why Under Armour's stock would underperform - I've actually spent quite a bit of time trying to like the stock. Value Stock? You see, the stock isn't exactly expensive from a valuation perspective. At a $5B valuation with slightly more than that in TTM revenue, an investor is not paying a huge multiple on sales. However, the mistake an investor could make is confusing Under Armour as a value stock - when it's actually a value trap. Let's dive into the financials to get a good picture of where Under Armour is today. 2022 2021 % Change Revenue $2.9B $2.9B 0% Gross Margin 46% 50.3% -8.5% Operating Income $154M $293M -47.4M Operating Cash Flow -2.5M $380M -100% Data: Under Armour Through 6 Months Ended September 30 Every key financial metric for Under Armour is in decline. Margins, operating income, operating cash flow are all falling like a rock. If Under Armour could drive top-line sales growth, it could mask the issue of declining margins and profits. But that's not what the company is projecting will happen. On the latest quarterly update the company actually lowered revenue guidance from 5-7% growth down to low single digit growth. Wall Street analysts aren't projecting a revenue surge either (and who would considering the macro backdrop) with Under Armour revenue estimates seen between $1.4B-$1.69B until 2025. So it's unlikely Under Armour is bailed out with a surge in sales. The company will need to expand operating margins. In the apparel business you do that by raising demand and selling the product directly to the consumer. Let's address the direct to consumer sales channel first. Under Armour is actually seeing less demand for its product direct to consumer. Here are the DTC revenue figures over the past six months. 2022 2021 Change 1,097,940 1,164,365 -5.7% Having declining DTC net sales isn't a fashion industry or macro environment issue for Under Armour. Nike's most recent quarterly DTC sales were up 25%. Demand Creation The problem with Under Armour today is exactly the same as it was in 2016. The brand doesn't appeal to a wide enough audience. Period. The suburban dad and soccer mom will find the brand appealing for trips to the gym or for the kids. But the hip and fashionable crowd is not wearing Under Armour. As odd as it may seem, if you don't see a brand being worn by popular musicians, or in this era, popular "influencers" on social media - the brand isn't going to reach the crowd that actually makes it cool. Investors mocked me in the comments of my 2016 article when I went to shopping malls to see if people were wearing Under Armour - now you just need to surf Instagram (META) and TikTok. Justin Bieber - IG Post 1/16/23 (Justin Bieber Instagram) Does Nike pay Justin Bieber to wear its shoes and post pictures of him wearing them? I don't know. But the post was liked over 3.1M times and likely seen by millions more. Kylie Jenner also has one of the most followed accounts on Instagram. It too wasn't a challenge to find a post with Nike being front and center. Kylie Jenner Instagram 6/19/22 (Kylie Jenner Instagram) Now Kylie Jenner is in a relationship and has children with Travis Scott, who does have an endorsement deal with Nike. However it underscores another example of how Nike not only partners with the top athletes - but also key entertainment figures. Some investors will mock going to a shopping mall or perusing social media to see what kids half our age (or more) are wearing - but that's fashion. Have your brand popping up in the most popular social media accounts and you can trade 40x forward earnings and 4x sales like Nike. Yes, Under Armour has social influence through Stephen Curry, Tom Brady and more importantly Dwyane "The Rock" Johnson. But Nike has LeBron James, Cristiano Ronaldo, Tiger Woods, Michael Jordan and countless others too.Seeking Alpha • Dec 22
Under Armour: Good Pick For The New CEO
Summary After announcing a CEO transition back in May, Under Armour has finally selected its new CEO. Stephanie Linnartz, current President of Marriott International, Inc., will become the next CEO of Under Armour. Founder and current Chair, Kevin Plank, will remain deeply involved in the direction of the firm, implying that the strategy won't change much. Under Armour needs to find its true brand identity and if the new CEO can't revamp the company to her liking, I don't foresee a material improvement. I re-iterate my previous Hold rating and $11 USD price target as we await a refreshed strategy in 2023. Introduction After broadcasting on May 18, 2022 that a CEO transition was underway, Under Armour (UA) finally announced on Dec. 21, 2022 that Stephanie Linnartz, President of Marriott International, Inc. (MAR), would become CEO on Feb. 27, 2023. In her current role, Ms. Linnartz has been responsible for developing and executing MAR’s global consumer strategy. Notable aspects of her duties include managing brands, marketing & sales, revenue management, customer engagement, technology, and more. MAR is the world’s largest hospitality company with almost 8,200 properties throughout 138 countries under dozens of brands. At a first glance, it seems like Ms. Linnartz was chosen due to her deep background in technology operations and her successful oversight of MAR's comeback post-COVID, which has seen the stock outperform peers this year and post stellar results, above the S&P500. I think the selection is interesting - because while it acknowledges some deficiencies for UA (notably on digitization), it provides the company with an opportunity to refresh the brand and its strategy. Seeking Alpha Quant Tool It will be intriguing to see if Kevin Plank, founder and Chair of UA, will relinquish some control to allow an executive from a different industry to truly shake up the company. UA also mentioned that interim CEO, Colin Browne, will become COO, which implies the strategy won't change much. In the near-term, I re-iterate a Hold rating and an $11 USD price target until the total strategy can be clarified in 2023. CEO Background & Fit Prior to Ms. Linnartz's appointment as president of MAR in February 2021, Ms. Linnartz led the Consumer Operations, Technology and Emerging Businesses Team and started with the firm in 1997 as a financial analyst. She is also on the board of Home Depot (HD), which showcases that she has a strong retail background and an understanding of a medium-high income consumer. She has some experience in sports, as Marriott has completed partnerships with several sports leagues, including with the NFL, NCAA, and Formula 1. Ms. Linnartz has also assisted in key digital transformation plans, including tipping through an app and even experimenting with VR. This unique background leads me to believe that Ms. Linnartz is a very capable pick to lead Under Armour and should be able to improve the brand strength. When reviewing the fit with UA to Ms. Linnartz, I believe there are key synergies that can be activated. UA has several key strengths that Ms. Linnartz can build upon, including being one of the most known sports brands globally, which is similar to Marriot's standing in the hotel industry. UA also has a diverse product portfolio and Ms. Linnartz oversaw dozens of brands at MAR, so she should be able to sift through and/or reduce spend on the underperformers and generate outsized growth in the company's top segments. While the wholesale business has continued to generate global growth, e-commerce sales remain only 36% of the revenue mix, and her digital transformation experience at MAR should allow UA to develop this part of the business. Improving e-commerce sales will be critical to compete on a global scale, and bringing in fresh blood from a consumer-oriented executive with proven experience in successful digital transformations is positive. Under Armour CEO Transition Press Release Risks Surprisingly, I don't think this appointment comes with many risks from the new CEO. Ms. Linnartz is more than qualified and brings experience from various sectors that should allow UA to improve its connection with customers. The key risks are the macro environment and Kevin Plank's influence. Retail sales are slowing in the U.S. and a small recession seems imminent in 2023. Being able to strengthen the brand in specific areas will be critical to weather the storm. While not a deal breaker, it would have been helpful to acquire an executive who has experience in specific sports/categories that could have helped tailor UA's strengths to its offerings and become a leader in select categories. As of now, it seems likely that UA will remain a competitor, but not a leader, in several athletic apparel and footwear categories.Seeking Alpha • Nov 04
Under Armour: Stay Neutral Despite Discount To Peers And Better Than Expected Results
Summary Most sportswear companies have significantly increased their inventory balance. Under Armour was able to keep inventory at the same level. The signing of Stephen Curry, one of the best basketball players in NBA history, can contribute to the growth of UA. The company trades at a significant discount to competitors. However, the discount has objective reasons. Firstly, the absence of a permanent CEO creates risks for shareholders. Secondly, low and unstable net margins lead to a significant deviation from the forecasted cash flow and estimated fair market value. Investment Thesis Due to supply chain problems, most sportswear companies have significantly increased their inventory balance. However, Under Armour (UA) (UAA) was able to keep inventory at pre-pandemic levels. Bulls like the potential of the Curry line and a significant discount to peers. However, we remain neutral. Firstly, Under Armour is still in search of a permanent CEO. The CEO largely determines the vector of the company's development and their absence is an important argument in favor of staying away. Secondly, high margins provide a margin of safety in the event of an increase in costs, and Under Armour is characterized by low and unstable margin. According to our valuation, Under Armour is trading near fair market value. We rate shares as a Hold. Company Profile Under Armour specializes in the manufacture and sale of sportswear, shoes and accessories worldwide. The manufacturer produces its products under the brands UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, UNDER ARMOUR UA Logo, and others. The company operates through 1,400 own and partner stores/outlets in North America, EMAE, Asia Pacific and Latin America. The revenue structure is presented below: Created by the author Effective Inventory Management At the end of September, Nike (NKE) released its first quarterly report, where management predicted a decrease in margins due to a 44% increase in inventory. Investors apprehensively perceived the news about the problems of the largest sportswear company, Nike shares fell and pulled peers, including Under Armour. Due to supply chain problems, most sportswear companies have significantly increased their inventory balance. Under Armour is one of the few companies that was able to keep stocks at pre-pandemic levels. Data by YCharts In addition, over the past five years, Under Armour has reduced the inventory level as a percentage of revenue, while the main competitors either remained in place or significantly increased the indicator. 2019 2020 2021 2022 TTM UAA 22.34% 17.28% 22.86% 14.88% 16.14% NKE 13.84% 16.85% 14.79% 15.70% 17.12% ADDYY 15.21% 15.58% 23.68% 18.54% 19.39% LULU 15.58% 15.69% 16.20% 18.07% 16.46% Effective inventory management is one of the two main bullish arguments regarding Under Armour. Indeed, maintaining a reasonable level of inventory indicates that demand for the product remains and ensures a steady operating cash flow. A Billion Deal One of Under Armour's main ambassadors is Stephen Curry, the Golden State Warriors point guard and one of the greatest basketball players in NBA history. Steven signed his first contract with UA back in 2013, after leaving Nike. In 2020, a separate CurryBrand was created. Curry's current contract expires in 2024 and costs the company about $20 million annually. In a recent interview for Rolling Stone, the athlete said that he is going to sign a lifetime contract worth more than $1 billion. Thus, Stephen will stand alongside such celebrities as Michael Jordan, LeBron James, Cristiano Ronaldo, and Lionel Messi. Today, Jordan earns a cosmic $600,000 for Nike every hour, which can be equated to $5.26 billion a year (about 11% of Nike's revenue). Considering that the clothing manufacturer contracts with Michael cost about $150 million a year - the deal seems very profitable. LeBron James' share of Nike's revenue is more modest and in our opinion more amenable to comparison with the future Curry brand. LeBron's line brings in about $600 million annually, with a contract value of $30 million for the clothing manufacturer. Stephen Curry will be able to demonstrate similar figures after a certain time. The signing of Curry can give a new impetus to the growth of Under Armour because as practice has shown, great athletes continue to influence sports and business even after their careers. Given the status of the greatest performer of 3-point shots in the history of the NBA and its significance for the whole of basketball, Curry's popularity will not disappear even years after the end of his career. About Risks And Valuation As we noted above, one of the two main bullish arguments regarding Under Armour is effective inventory management. The second argument is a significant discount of the company with peers. Indeed, Under Armour is trading cheaper than Nike, adidas (ADDYY), and Lululemon Athletica Inc. (LULU). UAA NKE LULU ADDYY P/E 8.86x 24.68x 37.53x 14.17x EV/S 0.59x 3.08x 5.87x 0.98x P/B 1.51x 8.58x 14.31x 2.86x P/CF 4.53x 31.95x 54.98x 11.02x However, a significant discount is due to several objective reasons. Firstly, Under Armour is still in search of a permanent CEO. Former CEO Patrik Frisk had stayed in this post for a year and a half and left the company in May. The CEO largely determines the vector of the company's development and his absence is an important argument in favor of staying away. The second reason is the low and unstable net margin of Under Armour. This is important because high margin provides a margin of safety in the event of an increase in costs. A 5% increase in costs and expenses for a company with a 10% margin will cost 45% of net profit, and for a company with a 30% margin, the bottom line will decrease by only 12%. Data by YCharts Low margin complicates DCF estimation at the stage of making assumptions since an increase in future expenses by several percentage points leads to a significant deviation from the forecasted cash flow and estimated fair market value. This is the reason for the wide range of price targets from investment banks. RefinitivSeeking Alpha • Oct 23
Under Armour: Current Headaches Will Likely Put More Pressure On The Stock
Summary Under Armour's stock has been under pressure as a result of supply chain issues that prompt retailers to mark down their inventories and of worse-than-expected earnings. Nevertheless, despite its lean inventory, the management expects a 550-600bps of gross margin decline in the upcoming quarter, which indicates that significant discounting is probably underway. The stock looks cheap after going south for months. Yet, we see that UA's story has not yet changed: the company was unable to drive its long-term revenue growth trajectory. A leadership change, however, could become a game changer for UA, especially if the company shifts from a defensive position to become a growth pursuer. Recap We wrote in our article titled “UA: The Story Has Not Yet Changed” that while Under Armour (UAA) (UA) saw a jump in sales, such a trend could be short-lived just because people were returning from social restrictions. Furthermore, we expressed concerns about the company’s long-term revenue growth trajectory after going south in the last couple of years. Has our stance changed since then? Is there any change in the fundamentals that could justify a buying opportunity? Probably More Discounting Than Expected These months have not been good for athletic apparel companies, as they are facing supply chain issues, including elevated freight costs and surging inventories, that came as repercussions following the global pandemic. As a result, UA's stock price fell from $27 per share to below $7 per share in less than a year. Data by YCharts Perhaps the most sizable decline happened in early May, during which the stock slid by a third after the company recorded an operating loss of $46 million and a net loss of $60 million. Gross margin also eroded to 46.5%, declining from 50-51% in the previous quarters. In addition, the management revised its FY2023 guidance presented in the so-called transition quarter: Top-line growth to reach 5-7% Gross margin to decline 150bps to 200bps Operating income to reach $375 million to $400 million Adjusted diluted earnings per share to be in the range of $0.63 and $0.68 The revised guidance is as follows: Top-line growth to reach 5-7% Gross margin to decline 375bps to 425bps Operating income to reach $300 million to $325 million Adjusted diluted earnings per share to be in the range of $0.47 and $0.53 Moreover, UA’s stock has performed the worst among its peers YTD (see Figure 2). As near-term headwinds will likely intensify in the following quarters, how will UA tackle those challenges? UA's Stock Price Change (%) (Vektor Research, Yahoo Finance) First, ocean freight costs were significantly down, but they have not returned to the pre-pandemic levels, as cited in the Washington Post. Accordingly, ocean carriers hope to alleviate the price decline by cancelling 50% of sailings. Instead, late delivery and factory closures overflow retailers with excess inventories. The problem is that out-of-season inventories arrive at the same time, and retailers have no choice but to increase promotional activities and markdowns. In addition, ocean delivery times have improved but remained elevated vs. pre-COVID time, said Meghan Frank, Lululemon (NASDAQ:LULU) CFO. Take, for example, NIKE (NYSE:NKE). CFO Matthew Friend said this during the 1Q23 earnings call: So when we look at our overall inventory, we think that there's about 10% of the inventory that we're focused on in terms of trying to drive more accelerated liquidation. And while our inventory was high at the end of the first quarter, we do expect to see sequential improvement in inventory balances from here over the next three quarters. Data by YCharts However, things are different with UA, whose inventory balances were relatively lean. Patrik Frisk said that the company was “very-very selective” with its investments. As it stands, UA is rebuilding its inventories, aiming to be “in a better supply chain position relative to product availability.” Data by YCharts We initially assumed that being leaner in inventories would likely give UA a privilege for not discounting many of its items. Indeed, the market is doing more promotional and markdowns, and UA will have no choice but to play a part to “stay in the game.” But the company will do it “in a very strategic way” and not “go deeper than competitors,” especially as it is building its premium brand image. Nevertheless, the company expects a gross margin decline of 550bps to 600bps in 2Q23 (1 July – 30 September) from a record 51% in 3Q21, a significant of which will stem from promotional and discounting, the company said. As said during the 1Q23 earnings call: And then relative to gross margin for Q2, the lion's share of the impact is anticipated elevated promotional activities as we manage through the environment. So that is probably close to a 3-point impact over prior year quarter. While in the 3Q21 earnings call: Due to higher-than-expected demand during the quarter, we further reduced promotions and realized higher-priced sell-through, which of course you see in our gross margin results. Will UA do more significant discounting than expected? By looking at NIKE’s 1Q23 results, we can get a glimpse of the back half of the year since NIKE’s reporting period for the first quarter ends in August. NIKE “only” recorded a gross margin decline of 220bps in 1Q23 (1 June – 31 August), despite a need to accelerate the liquidation of 10% of its inventories. Moreover, the management expects more aggressive out-of-season discounts that would put more pressure on the gross margin (350-400bps decline in 2Q23). In our view, as UA expects notable gross margin deterioration in the next quarter, we see that UA probably will have to do more promotions and discounting despite its lean inventory balances. In addition, as inflation is persistently high, we believe that consumers are still looking for bargains, all more reasons to do more discounting to stay competitive.Seeking Alpha • Oct 05
Under Armour: Nike Has A Problem
Summary Under Armour recently hit COVID lows due to the inventory problem at Nike. The athletic apparel company doesn't face the same inventory problem, but UA will face a promotional marker pressuring margins. The stock remains absurdly cheap with a forward EV/S multiple below 0.5x. In very surprising news, Nike (NKE) discussed on their recent earnings report how inventory levels at the giant athletic footwear company were now out of control. The news is somewhat shocking considering how well Under Armour (UA, UAA) navigated the supply chain crisis with flat to down inventory levels. My investment thesis is ultra Bullish with the stock trading at COVID lows. Shocking Inventory Picture Over the last couple of years, Under Armour had made huge progress in improving margins and managing inventory levels to generate solid profits. The COVID impacts on the supply chain pressured gross margins over the last year to hide a lot of those improvements. The athletic apparel retailer recently reported quarterly inventories of $954 billion, flat from 2019 levels with revenues up 13%. Under Armour appeared in a solid inventory position considering the management team decided to constrain and cancel orders, even at the cost of lower sales due to a lack of product in certain areas. For this reason, the inventory news out of Nike following FQ1'23 results was shocking to the market. The athletic footwear giant reported inventories for the period ending August jumped 44% YoY to $9.7 billion. The company now has inventories 50% above 2019 levels. Data by YCharts The combination of late delivery of prior season orders and a surprise early delivery of holiday orders has led to the rapid surge in inventories. On the FQ1'23 earnings call, CFO Matthew Friend was clear the issue was mismatched ordering with still strong demand: In September, month-to-date retail sales are up double digits versus the prior year, following a strong back-to-school season. However, our North America inventory grew 65% versus the prior year, with in-transit inventory growing approximately 85%. In essence, double ordering pressured the supply chain to catch up with orders, not actual demand. On the earnings call, Nike confirmed shipping times are down substantially, which should lower elevated freight costs: Earlier ordering by retailers, driven by strong consumer demand and less predictable delivery timelines, had led to elevated inventory levels broadly across consumer goods. Then transit times began to rapidly improve with signals that further improvement may be coming. The good news is that the supply chain issue is improving. The Los Angeles/Long Beach ports no longer have a massive backlog and the WSJ confirmed Trans-Pacific container costs are down substantially from last year. In fact, each container now costs $15,100 less and demand is collapsing during the seasonally strong holiday period due to retailers like Nike ordering early. A Better 2023 Ahead As highlighted prior, Under Armour topped 50% gross margins during 2021 and was on pace to sustainable strong margins. The company had separated the business from Nike back into a premium tier with higher margins. The whole sector has seen margins pressured with Nike just reporting last quarter margins down 220 basis points at 44.3%. Under Armour is still forecasts above those levels with guidance for the new fiscal year at ~45.6%.Seeking Alpha • Aug 08
Under Armour: Q1 Review In Line, Stock Remains A Hold
Under Armour Inc. recently reported Q1 earnings that met expectations amid forecasts of tighter margins and a net income drop. The company reduced profit guidance by ~$75MM for the full year, while holding year-end revenue expectations intact from the prior quarter. UAA continued its share buyback plan, repurchasing $25MM worth of shares in its bid to boost shareholder returns. I reiterate my previous "Hold" recommendation from July, and forecast a $11 USD price target with an 18-month view. Introduction & Purpose Under Armour, Inc. ([[UA]], UAA) reported earnings that met analysts' expectations, but didn’t discourage previous concerns about the operational turn around. The company's wholesale segment generated some growth, while the online and direct-to-consumer businesses saw declines. My recent article on UAA showcased a bear view, and this quarter reinforces my initial opinion. With the macro environment likely to remain a bit challenged as rates rise and supply chain woes drag on, UAA isn’t well-positioned to significantly overcome these obstacles. I reiterate my “Hold” rating with an $11 USD price target over an 18-month timeline. Q1 Review UAA announced earnings on Aug 3, 2022 that didn’t turn many heads, as evidenced by the lack of movement post earnings. Revenue was flat year over year, at $1.3B. The company's adjusted operating profit dipped to just $44MM, an underperformance from the prior year quarter. That said, with the company reconfiguring its year-end to March 31, it’s a bit difficult to compare apples to apples. The only segment that saw revenue jump was the lowest margin business, wholesale, which increased 3% to $792MM. Contrasting this increase were significant drops in retail and online direct to consumer sales, which were a combined 7% underwater from the prior year. The company did not announce same store sales figures, but given the in-store revenue dipping 8%, I don’t believe it would have been materially positive. The only geographic region to sport material growth was Latin America, up 6%, while all other segments including North America, Europe, and Asia were flat or negative. CFO David Bergman noted that the dip in Asia was primarily due to China’s on-going lockdowns, and that the rest of the region had positive sales. Inventory was up only 8%, which is somewhat positive, given other peers had larger jumps year over year. Legal expenses totaled $10MM as UAA had been wrapped up in litigation against UCLA for a terminated apparel deal. SG&A rose by 9% due to marketing spend and increased labor costs. With diluted earnings per share of just $0.02, UAA’s Q1 performance didn’t send a message that their previously announced turnaround was full steam ahead. Author - Geographic Sales Breakdown via UAA Press Release The company also made some adjustments to their year end outlook. UAA now anticipates year end operating profit of $300MM-$325MM, below the previous forecast of $375MM-$400MM. The company also reiterated revenue increase of 5%-7%, while holding SG&A expectations flat to the prior year. Gross margin is now expected to drop 375-425 basis points compared to the previous expectation of a 150-200 basis point decline compared to the baseline period's margin of 49.6%. The troublesome part of this announcement was why – the company did not mention the supply chain crisis for the updated drop in margins. UAA noted that more promotional activities, channel mix (more wholesale), and negative impacts from anticipated changes in foreign currency will weigh on gross margins. This means that more discounted product will hit the shelves heading into the end of CY2022. These developments led Baird to drop its price forecast after the quarterly report. With inventory rising and higher promotional activities anticipated, I see UAA continuing to underperform. UAA expects to spend $225MM in CAPEX, in line with their prior communication. The company repurchased $25MM of shares during the quarter, dramatically reducing their spend from $300MM in the prior quarter. They noted that they still have approximately $175MM remaining under authorization to buyback shares. With substantial profit headwinds, I doubt they complete the buyback program in full. Interim CEO Colin Browne led his first earnings call after stepping into the role. Kevin Plank, Chairman and Founder, provided some brief updates about the brand awareness and strength, but cautioned that the CEO search was on-going. Colin, a 10-year veteran in operations at Under Armour, then noted that in his conversations with suppliers that customers enjoy the brand so much that demand for casual wear is increasing. He also mentioned that while inventory will remain elevated that their revenue growth rate should exceed the inventory increase in the next couple of years. In the Q&A session, executives highlighted that footwear and Asia will continue to drive growth for the business and that the forecasts rely on their outperformance. Leadership was also grilled on the gross margin guide down by Matthew Boss of JPM, and confirmed that additional promotional activities to sell discounted clothes and increased wholesale distribution are the main drivers of the refreshed guidance range. David Bergman, CFO, also cautioned that while there is availability on the share buyback program, UAA liked the liquidity flexibility. Given these comments, I anticipate that the cash supply will dwindle via operational deficiencies, because there were no mentions of increased CAPEX or the search for an acquisition target. Overall, the call didn’t have any surprises – the company is working through some headwinds, but they are optimistic that revenue growth will accelerate into the next year. With margins weighing on profits in the medium-term, I don’t see an X-factor that warrants labelling UAA a buy right now. While revenue in footwear and Asia may exceed expectations, given the company’s lagging interest in both online and North America, I don’t see a positive catalyst that can turn the tide. Google Trends Research Model & Conclusion While I don't foresee intangible strength from UAA, the refreshed model still shows that if the company can deliver on forecasted growth, there's some runway for the stock to modestly pop. The company’s cash position is likely to somewhat stabilize, as management didn't hint at a large stock buy-back on the conference call. The model forecasts a WACC of ~8.6%, virtually unchanged from my previous analysis, though with minor updates to the debt rate, the market premium and the 10-year paper. Given their weak Q1 performance, I anticipate the cost of debt rising to 7.75% should they attempt to add leverage in this environment.Seeking Alpha • Jul 07
Under Armour: This Quality Brand Remains In Limbo Without A CEO
Under Armour Inc. recently reported Q1 earnings that were underwhelming, posting revenue of $1.3B, but also a net loss. The company announced that they will search both internally and externally for a new CEO. With retail sales slowing and a lot of debt, UAA has a challenging journey ahead. Even with the model showing some upside after the recent market beatdown, UAA is not well-positioned to succeed. I forecast a $11 price target with an 18-month view – equating to a “Hold”, but recognizing that there’s a current opportunity to swing trade the stock. Introduction and Thesis While Under Armour Inc. (UAA) continues to grow both their revenue and strategic partnerships, the company remains an underperformer. UAA is in the 4th year of a transition plan that has yet to significantly pan out and now investors are in limbo as they await the next CEO to be announced likely before the end of the summer. I forecast an $11 price target over the next 18 months, based on a CY2023 (FY2024) EV/EBITA of 9.7 and CY2023 EPS of $0.65, which would support an $11 price target at a 16x multiple. UAA, established in 1996, manufactures, designs, and sells athletic clothing for men and women of all ages. The company's main revenue drivers are related to the development, marketing and distribution of athletics performance driven apparel, footwear, and accessories. UAA focuses on footwear and apparel products for running, training, basketball, soccer, golf, and more sports. Additionally, UAA offers accessories, including gloves, bags, headwear, and also have recently offered digital subscription and advertising services under the MapMyRun and MapMyRide platforms. UAA markets to consumers under multiple brands, including UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, PROTECT THIS HOUSE, ARMOUR FLEECE, and more. The company sells via wholesalers, including national and regional chains, independent/specialty retailers, department store chains, Under Armour retail stores, institutional athletic departments, and more. As of December 31, 2021, UAA has 422 retail touchpoints and leases, and also sells through e-commerce platforms. UAA operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America and is headquartered in Baltimore, Maryland. MapMyRun by Under Armour Company Overview & Q1 Results UAA’s previous struggles are well known, as growth slowed in the latter half of the 2010’s and investigations were conducted by the SEC. While COVID suffocated retail apparel store traffic, UAA has continued to grow throughout the pandemic both in-person and digital sales. The company has continued to open stores globally, and the company’s key focus for growth is in Asia, notably China and South Korea. Key global partnerships with mainstream star athletes to position themselves against competitors such as NIKE (NKE) and adidas (ADDYY) have proven fruitful. Steph Curry and the Golden State Warriors recently won the NBA championship, while Jordan Spieth and Bryce Harper have had strong 2021 and 2022 campaigns. The company also has emphasized increasing the footwear sales mix as a larger percentage of overall sales by 300 basis points by 2023, given an estimated 10-12% CAGR in that segment. They have focused on their professional sponsors, including aforementioned Steph, Bryce, and Joel Embiid, and have also announced partnerships with dozens of US colleges for NCAA basketball. The company emphasizes large and clean store designs that act as brand incubators and smaller pop-up locations to test new markets, reach new guests, and grow overall brand awareness. Factory and Brand houses are strategically placed to ensure clients in different locales can utilize discounted items in a grab and go fashion contrasting large and innovative spaces for the newest lines. The company sales mix is about 57% via wholesalers and 43% direct to consumer, though UAA wants to increase its e-commerce business without discounting product. In Q1, Under Armour reported a transition quarter that would bridge the gap to an updated fiscal year. The company forecasted year end revenues rising between 5-7%, but noted gross margins shrank to 46.5% due to higher freight costs. While still forecasting strong revenue, given margin deterioration there is concern that UAA will miss estimates in the next few quarters. While the company previously forecasted strong growth in Asia, never ending lockdowns in China dragged on sales, leading to a 14% Asia-Pacific ((APAC)) revenue drop in the quarter. E-commerce represented 45% of the sales mix, but only grew 2% from 2021. Footwear revenue, a key focus for the company, fell 4% while ongoing restructuring charges cut into profit by $57MM. Surprisingly, inventory dipped 3%, but remained elevated at over 80% of cash and 63% of revenue. The company lost $0.13 a share which sent the stock freefalling in early May, and along with rate hikes and a broader market downturn, the stock has now settled at around $9 a share. UAA Geographic Revenue Distribution The company also provided two updates: one regarding the previous share buyback plan and one regarding an executive leadership change. UAA purchased $300MM of shares in the recent quarter but didn’t confirm the updated diluted share count – given the average weighted share price in the quarter, it's likely the total number of shares decreased to about 450-455MM. The company also announced that Patrick Frisk would step down, and that an executive search would be underway. Patrick felt that operationally, the company was now in a much better place than when he took over in 2017, and that now focusing on digital and international growth was paramount. He also believed that the brand perception was increasing towards their competitors, mentioning NKE and LULU. UAA continues its search for a leader, which will leave stakeholders in limbo in the near term. Industry & Risks UAA competes in the athletic apparel space, with key competitors that include NIKE, adidas, and Columbia Sportwear (COLM). The global athletic apparel market is projected to reach $267B in 2028, expanding at a CAGR of 5%. The Asia-Pacific region is projected to dominate the market over the timeframe, which fits in UAA’s growth focus. However, recent inflationary trends have started to weigh on the retail apparel sector. May 2022 retail sales dipped 0.3% from the prior month in the U.S., with inflationary pressure and rising borrowing costs outweighing a flush consumer buoyed by recent stimulus. Online sales fell 1%, while travel spending continued to remain strong. It shows that customers are spending on experiences post-COVID as the economy becomes sluggish, showcasing a potentially rough short-term outlook for mid-cap retailers. However, with the World Cup coming up soon, UAA has a high-profile sports event that they can tap into and flex their sponsorships – though soccer isn’t their primary focus. When reviewing any apparel brand, there are crucial risks that are intrinsic and can't be completely mitigated. On a macro level, there is concern related with UAA’s inability to anticipate and acclimatize to brand and trend preferences. Additionally, there is also risk associated with pricing pressure given high inflation and global supply chain woes, especially for the UAA given their inconsistent cash flow results. A unique risk regarding UAA is their inability to revamp management and choose a successful CEO. UAA is also still reliant on China for manufacturing, with about 20% of its materials still sourced from there. There is a plan in place to reduce their dependency, with a target of 7% sourcing from China in 2023. However, given China’s government lockdowns, manufacturing risk remains, along with a challenging macro environment. These factors have led to a reduction in estimates by analysts across the street. Seeking Alpha Quant Tool CEO Transition UAA recently announced in late May that they will commence the search for a new CEO. Patrick Frisk stepped down from the perch and was replaced by Colin Browne on an interim basis. The company highlighted that Frisk helped architect its long-term strategic plan that underscored its commitment to athletic performance by reengineering its structure, systems, and go-to-market process. Frisk entered UAA in 2017 at a time when scandals plagued the company – while the brand was growing in both sales and popularity, corporate shenanigans and an SEC investigation gave investors pause. The former Aldo Group & North Face executive focused on operational efficiency by cutting wholesale accounts and streamlining production in Vietnam, while also carefully expanding their partnership portfolio. But while founder and chairman Kevin Plank said that the leadership transition was planned, this move feels anything but. Lululemon (which I have rated as Buy) has continued to improve its standing in sports apparel throughout the pandemic, while legacy brands like Nike have proven catalysts coming up before the year end (FIFA World Cup). Meanwhile, UAA remains stranded in the near term – although the company plans to increase its digital sales structure and also improve its international presence, it is unclear how fast a new leader can help shape that vision given the current environment. Analysts from BMO and Cowen emphasized that UAA is now focused on revenue growth – but with consumer spending moving elsewhere in recent months, uncertainty remains. Watch this CEO choice closely, as it will further signal UAA’s focus moving into 2023. Model Sees Upside, but Momentum is Negative While I don't foresee intangible strength from UAA, the model does show that if the company can deliver on forecasted growth, there's some runway for the stock to modestly pop. While the company's net cash position dropped dramatically given management's interest on buying back stock, the company has sufficient cash balances. The model shows a WACC of ~8.6%. Given their weak Q1 performance, I anticipate the cost of debt rising above 7% should they attempt to leverage in this environment and forecast a continuing WACC above 9%. The majority of UAA's long term debt of $770MM+ will mature within 3-5 years, though if trends continue they may need to raise more money or reduce the buyback plan.Seeking Alpha • Jun 25
Under Armour: High Free Cash Flow Yield And Attractive Valuation
Under Armour was once prophesied to have a bright future being dubbed the next Nike; today however, the future of the company is relatively uncertain. In this analysis, I will show why I consider the Under Armour stock to currently be a buy, but also why I would underweight it in an investment portfolio. The company’s latest twelve months free cash flow yield is 9.9%. My DCF Model shows that Under Armour is currently undervalued, calculating a fair value of $17.77 for the company. This results in an upside of 94.3%. Under Armour’s overall scoring according to the HQC Scorecard shows that the company is currently moderately attractive in terms of risk and reward.Seeking Alpha • May 20
Under Armour: Tough Transition
Under Armour has collapsed to yearly lows due to a confluence of negative events. The company provided solid guidance for FY23 considering the retail environment, but the market has extrapolated fears due to short-term headwinds. The CEO is stepping down into a consulting role, and the market has extrapolated those fears into further weakness. The stock shouldn't trade at the yearly lows and at some of the lowest PE multiples in the athletic apparel sector.Seeking Alpha • Apr 29
Under Armour: Turnaround On Track
Short term challenges owing to supply chain bottlenecks, cost inflation, and shifting consumer spending. Long term transformation on track. Decent financials however has some catching up to do compared to peers.Seeking Alpha • Feb 15
Under Armour: Temporary Speed Bump
Under Armour reported another strong quarter with numbers smashing analyst estimates. The athletic apparel retailer guided to high supply chain pressures in the current quarter, but the situation is just a speed bump on long-term profit growth. The stock is ridiculously priced at 1x EV/S targets for 2022.Seeking Alpha • Nov 02
Under Armour: Holidays Aren't Toast
Under Armour powered through supply chain issues to smash Q3'21 earnings targets. The company guided up 2021 sales targets to 25% growth along with improving gross margins. The stock trades at a forward EV/S multiple far below peers.Seeking Alpha • Sep 15
Under Armour's Story Has Not Yet Changed
Since our last publication, the stock price has increased by 7%, fueled by the solid 2Q21 results. In our view, despite Under Armour's recent success, it was the industry's demand pick-up that fueled the surge in revenue growth, which, in turn, drove the stock price. The story has not yet changed. Margins have been improving, and free cash flows continue to expand. But we have not yet seen a solid long-term revenue growth boost. Looking forward, we see that possible short-lived headwinds, such as supply constraints, could erase the positive sentiment on the stock.Revenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Under Armour makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Mar 26 | 4,966 | -496 | 2,165 | 0 |
| 31 Dec 25 | 4,976 | -520 | 2,342 | 0 |
| 30 Sep 25 | 5,049 | -88 | 2,286 | 0 |
| 30 Jun 25 | 5,115 | 102 | 2,239 | 0 |
| 31 Mar 25 | 5,164 | -201 | 2,271 | 0 |
| 31 Dec 24 | 5,316 | -127 | 2,287 | 0 |
| 30 Sep 24 | 5,401 | -18 | 2,280 | 0 |
| 30 Jun 24 | 5,569 | -83 | 2,359 | 0 |
| 31 Mar 24 | 5,702 | 232 | 2,393 | 0 |
| 31 Dec 23 | 5,768 | 384 | 2,380 | 0 |
| 30 Sep 23 | 5,864 | 395 | 2,385 | 0 |
| 30 Jun 23 | 5,871 | 377 | 2,370 | 0 |
| 31 Mar 23 | 5,903 | 374 | 2,376 | 0 |
| 31 Dec 22 | 5,806 | 157 | 2,386 | 0 |
| 30 Sep 22 | 5,753 | 145 | 2,459 | 0 |
| 30 Jun 22 | 5,725 | 171 | 2,464 | 0 |
| 31 Mar 22 | 5,727 | 219 | 2,416 | 0 |
| 31 Dec 21 | 5,683 | 351 | 2,341 | 0 |
| 30 Sep 21 | 5,558 | 435 | 2,242 | 0 |
| 30 Jun 21 | 5,446 | 360 | 2,197 | 0 |
| 31 Mar 21 | 4,802 | 118 | 2,136 | 0 |
| 31 Dec 20 | 4,475 | -549 | 2,165 | 0 |
| 30 Sep 20 | 4,512 | -749 | 2,189 | 0 |
| 30 Jun 20 | 4,509 | -686 | 2,185 | 0 |
| 31 Mar 20 | 4,993 | -520 | 2,266 | 0 |
| 31 Dec 19 | 5,267 | 92 | 2,228 | 0 |
| 30 Sep 19 | 5,216 | 112 | 2,208 | 0 |
| 30 Jun 19 | 5,229 | 85 | 2,184 | 0 |
| 31 Mar 19 | 5,213 | 6 | 2,171 | 0 |
| 31 Dec 18 | 5,193 | -46 | 2,176 | 0 |
| 30 Sep 18 | 5,172 | -138 | 2,181 | 0 |
| 30 Jun 18 | 5,138 | -159 | 2,155 | 0 |
| 31 Mar 18 | 5,055 | -76 | 2,106 | 0 |
| 31 Dec 17 | 4,989 | -48 | 2,091 | 0 |
| 30 Sep 17 | 4,925 | 143 | 1,912 | 0 |
| 30 Jun 17 | 4,988 | 217 | 1,909 | 0 |
| 31 Mar 17 | 4,897 | 177 | 1,865 | 0 |
| 31 Dec 16 | 4,833 | 198 | 1,818 | 0 |
| 30 Sep 16 | 4,691 | 200 | 1,774 | 0 |
| 30 Jun 16 | 4,423 | 173 | 1,690 | 0 |
| 31 Mar 16 | 4,206 | 240 | 1,579 | 0 |
| 31 Dec 15 | 3,963 | 233 | 1,483 | 0 |
| 30 Sep 15 | 3,688 | 215 | 1,404 | 0 |
| 30 Jun 15 | 3,422 | 203 | 1,307 | 0 |
Quality Earnings: UA is currently unprofitable.
Growing Profit Margin: UA is currently unprofitable.
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: UA is unprofitable, and losses have increased over the past 5 years at a rate of 52.3% per year.
Accelerating Growth: Unable to compare UA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: UA is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (13.8%).
Return on Equity
High ROE: UA has a negative Return on Equity (-35.04%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/18 15:19 |
| End of Day Share Price | 2026/05/15 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2026/03/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Under Armour, Inc. is covered by 52 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| John Staszak | Argus Research Company |
| Jonathan Komp | Baird |
| Matthew McClintock | Barclays |