Under Armour (NYSE:UA) Issues Quarterly Earnings Results

Under Armour (NYSE:UA) announced its earnings results on Friday. The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.03, Zacks reports. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate 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 Trading Down 5.5%

NYSE:UA traded down $0.34 on Friday, hitting $5.92. 5,608,344 shares of the stock were exchanged, compared to its average volume of 2,544,030. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.08 and a current ratio of 1.62. Under Armour has a 52 week low of $3.95 and a 52 week high of $7.91. The stock has a market capitalization of $2.53 billion, a price-to-earnings ratio of -5.11 and a beta of 1.59. The company’s 50-day moving average price is $6.24 and its 200 day moving average price is $6.20.

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

Insider Activity

In other Under Armour news, major shareholder V Prem Et Al Watsa purchased 739,521 shares of the stock in a transaction dated Wednesday, May 13th. The stock was bought at an average price of $4.97 per share, for a total transaction of $3,675,419.37. Following the transaction, the insider directly owned 44,179,116 shares in the company, valued at $219,570,206.52. This represents a 1.70% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Over the last 90 days, insiders have bought 1,178,344 shares of company stock valued at $5,865,147. 15.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in UA. Symmetry Peak Management LLC acquired a new stake in shares of Under Armour during the fourth quarter worth $48,000. Quarry LP bought a new position in Under Armour during the third quarter worth about $53,000. Mercer Global Advisors Inc. ADV acquired a new position in shares of Under Armour during the 4th quarter worth about $54,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of Under Armour in the 3rd quarter valued at about $62,000. Finally, Cerity Partners LLC acquired a new stake in shares of Under Armour in the 2nd quarter valued at approximately $65,000. Institutional investors and hedge funds own 36.35% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on UA shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Under Armour in a report on Wednesday. Robert W. Baird set a $5.50 price objective on Under Armour in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Sell” and an average price target of $5.50.

Under Armour Company Profile

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.