UNDER ARMOUR, INC.

Recommendation history

• Q4 2025HoldHold. Under Armour is improving profitability but not yet demand: Q4 revenue fell 11% to approximately $1.2 billion while gross margin expanded 170 bps to 46.7%; FY2025 adjusted operating income was $198 million. The turnaround has credible margin and cost traction, but Q1 FY2026 still calls for revenue down 4%-5%, and tariffs have forced management to withhold full-year guidance, leaving the brand reset and pricing-power thesis unproven.
• Q2 2025HoldHold: Under Armour delivered a strong profitability beat, with Q2 adjusted operating income of $166 million, adjusted EPS of $0.30, and gross margin up 200 bps to 49.8%, but revenue fell 11% to $1.4 billion and North America declined 13%. The reset is improving price realization and margins, yet the outlook still calls for low-double-digit full-year revenue contraction, a weak Q3 with revenue down approximately 10% and adjusted EPS of $0.02-$0.04, while the back half absorbs heavier marketing and seasonal pressure; product and wholesale recovery remain unproven.
• Q2 2024HoldHold: Under Armour delivered Q2 revenue of $1.6 billion, diluted EPS of $0.24, and 48.0% gross margin, but the better-than-expected profit was primarily freight-cost relief rather than stronger demand. Management cut FY2024 revenue guidance to down 2%-4% and North America to down 5%-7%, while leaving EPS at $0.47-$0.51; the brand reset offers upside, but management gave no clear FY2025 timeline for returning North America to growth.
• Q4 2026HoldUnder Armour is a hold after a mixed turnaround call: FY2027 revenue is expected to decline slightly, while adjusted operating income is guided to $140 million-$160 million and adjusted EPS to $0.08-$0.12. The bull case is a 220-270 bp gross-margin rebound, cleaner inventory, and improving international/wholesale trends; the tension is that profitability remains thin and the margin recovery depends heavily on an assumed $70 million IEEPA tariff refund, while North America and e-commerce are still weak.
• Q2 2026HoldUnder Armour remains a hold: Q2 revenue fell 5% to $1.3 billion, footwear declined 16%, North America fell 8%, and gross margin contracted 250 bps to 47.3%. Management expects FY2026 revenue down 4%-5% and adjusted EPS of only $0.03-$0.05; improving product and brand engagement are credible positives, but the call still lacked quantified sell-through evidence and near-term profitability remains exposed to tariffs.
• Q3 2024HoldHold: Under Armour delivered better-than-expected adjusted EPS of $0.19 and lifted full-year gross-margin expansion guidance to 120–130 bps, but the core business remains under pressure. Q3 revenue fell 6% to $1.5 billion, North America fell 12%, footwear fell 7%, and management acknowledged continued wholesale weakness, promotional pressure, and likely early-fiscal-2025 bumpiness; the turnaround is not yet investable on proof.
• Q3 2025HoldHold: Under Armour beat Q3 expectations and raised FY2025 adjusted operating income guidance to $185-$195 million and adjusted EPS to $0.28-$0.30, while gross margin expanded 240 bps to 47.5%. However, revenue still fell 6% to $1.4 billion, APAC is deteriorating, and management could not provide timing for a North American revenue inflection or quantify the remaining promotional reset.