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1. Company Snapshot

1.a. Company Description

Under Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth.The company offers its apparel in compression, fitted, and loose fit types.It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.


In addition, the company offers accessories, which include gloves, bags, headwear, and sports masks; and digital subscription and advertising services under the MapMyRun and MapMyRide platforms.It primarily offers its products under the UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands.The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites.


It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America.Under Armour, Inc.was incorporated in 1996 and is headquartered in Baltimore, Maryland.

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1.b. Last Insights on UA

Under Armour's recent performance was negatively impacted by weak Q1 2026 results, margin pressures, and a challenging North American turnaround. The company's guidance for Q2, which includes a 6-7% revenue decline and 340-360 basis point gross margin decline, disappointed investors. Tariff headwinds and intense competition are expected to pressure margins. Analysts have slashed their forecasts after Q1 results, citing uncertain brand turnaround prospects. Weak consumer demand in North America and wholesale uncertainty are key concerns.

1.c. Company Highlights

2. Under Armour's Turnaround Efforts Continue

Under Armour reported a revenue decline of 4% to $1.44 billion, with North America revenue decreasing 8% and EMEA revenue increasing 12%. The company's gross margin declined 250 basis points year-over-year to 47.3%, mainly due to supply chain headwinds and unfavorable channel and regional mix. Adjusted EPS came in at $0.04, beating estimates of $0.02446.

Publication Date: Nov -09

📋 Highlights
  • New Leadership Transition:: CFO Dave Bergman departing; Reza Taleghani joining in February 2026.
  • APAC Revenue Decline:: 14% drop driven by structural challenges and legacy issues.
  • Product Innovation:: Launch of $160 Velociti run shoe and NEOLAST sustainable fiber partnership.
  • Margin Pressures:: Q2 gross margin fell 250 bps to 47.3% due to supply chain costs and mix shifts.
  • Regional Strategy:: EMEA grew 12% with DTC momentum; North America wholesale aims to stabilize by fiscal 2027.

Segment Performance

The decline in North America was primarily due to a decline in full-price wholesale business and lower e-commerce sales. In contrast, EMEA saw strong growth in the DTC channel, driving a 12% revenue increase. APAC revenue declined 14%, mainly driven by wholesale business. The company's efforts to stabilize its U.S. wholesale business are ongoing, with a focus on top-to-top relationship building and targeted assortments.

Operational Highlights

Under Armour is focusing on product innovation, storytelling, and a premium experience to drive its turnaround. The company has introduced new products, such as the $160 Velociti distance run shoe, and is leveraging its partnerships with athletes to tell its brand story. The company is also committed to improving its position in footwear, particularly in cleated and training categories.

Guidance and Outlook

The company expects revenue to decline 4% to 5% in fiscal '26, with a gross margin decline of 190 to 210 basis points. Adjusted operating income is expected to range from $90 million to $105 million. For the third quarter, revenue is expected to decline 6% to 7%, with a gross margin decline of 310 to 330 basis points. Kevin Plank mentioned that the team is confident that North America will see stabilization before the end of fiscal '27.

Valuation and Estimates

With a P/S Ratio of 0.39 and an EV/EBITDA of 8.44, the market appears to have priced in some of the challenges Under Armour is facing. Analysts estimate next year's revenue growth at -3.9%. While the company's turnaround efforts are ongoing, its focus on product innovation, storytelling, and premium experience is expected to drive future growth. The actual EPS of $0.04 beat estimates, indicating some positive momentum.

3. NewsRoom

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Geode Capital Management LLC Cuts Holdings in Under Armour, Inc. $UA

Dec -01

Source: defenseworld.net

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Boston Partners Cuts Position in Under Armour, Inc. $UA

Dec -01

Source: defenseworld.net

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AXQ Capital LP Boosts Stock Position in Under Armour, Inc. $UA

Nov -25

Source: defenseworld.net

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Steph Curry likely made $300 million with Under Armour. Can his next step match Roger Federer's post-Nike success?

Nov -14

Source: marketwatch.com

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Dow Jones Today: Stock Indexes Mixed as Tech Shares Rebound; Dow Down for 2nd Straight Day; Bitcoin Drops to Lowest Level in 6 Months

Nov -14

Source: investopedia.com

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Stephen Curry and Under Armour end their 13-year partnership as the sportswear company restructures to revive sales

Nov -14

Source: businessinsider.com

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Under Armour and Steph Curry are breaking up. The move is partly about ‘discipline,' CEO says.

Nov -14

Source: marketwatch.com

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Under Armour, Stephen Curry to end partnership

Nov -13

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.35%)

6. Segments

Apparel

Expected Growth: 2%

Under Armour's 2% growth in Apparel is driven by increasing demand for athleisure wear, successful marketing campaigns, and strategic partnerships with popular athletes and teams. Additionally, the company's focus on innovation, such as its Curry and HOVR footwear lines, has helped to boost sales and expand its customer base.

Footwear

Expected Growth: 3%

Under Armour's footwear segment growth is driven by increasing popularity of Curry and HOVR footwear lines, expansion into new markets, and strategic partnerships with key retailers. Additionally, the company's focus on digital marketing and e-commerce platform enhancements have contributed to the 3% growth.

Accessories

Expected Growth: 4%

Under Armour's Accessories segment growth is driven by increasing demand for athleisure wear, strategic partnerships with popular fitness apps, and expansion into new markets. Additionally, the company's focus on innovative products, such as smart shoes and fitness trackers, has contributed to the segment's growth.

License Revenues

Expected Growth: 1%

Under Armour's license revenue growth is driven by increasing demand for branded apparel and footwear, expansion into new markets, and strategic partnerships with key retailers. Additionally, the company's focus on digital marketing and e-commerce platforms has enhanced brand visibility, contributing to revenue growth.

Corporate Other

Expected Growth: 0%

Under Armour's Corporate Other segment shows 0% growth, driven by stagnant licensing revenue, flat demand for digital fitness subscriptions, and minimal contribution from new business ventures, offsetting any potential gains from strategic partnerships or cost-saving initiatives.

7. Detailed Products

Footwear

Under Armour offers a wide range of footwear products, including running shoes, basketball shoes, football cleats, and sandals, designed for performance, comfort, and style.

Apparel

Under Armour provides a variety of apparel products, including tops, bottoms, dresses, and outerwear, designed for performance, comfort, and style.

Accessories

Under Armour offers a range of accessories, including hats, bags, socks, and gloves, designed to complement their apparel and footwear products.

Connected Fitness

Under Armour's Connected Fitness segment includes wearable devices, such as fitness trackers and smartwatches, that track fitness and health metrics.

Digital Fitness

Under Armour's Digital Fitness segment includes mobile apps, such as MyFitnessPal and MapMyFitness, that provide fitness tracking, nutrition planning, and workout planning.

8. Under Armour, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Under Armour faces moderate threat from substitutes, as consumers have various alternatives for athletic apparel and footwear, such as Nike, Adidas, and Reebok. However, Under Armour's strong brand recognition and innovative products help mitigate this threat.

Bargaining Power Of Customers

Under Armour's customers have relatively low bargaining power due to the company's strong brand image and limited availability of substitutes. This allows Under Armour to maintain its pricing power and negotiate favorable terms with retailers.

Bargaining Power Of Suppliers

Under Armour's suppliers, such as textile manufacturers and logistics providers, have moderate bargaining power. While the company has some flexibility in choosing suppliers, it still relies on a few key partners, which can exert some pressure on prices and terms.

Threat Of New Entrants

The threat of new entrants in the athletic apparel and footwear industry is relatively low due to high barriers to entry, including significant capital requirements, established brand recognition, and complex supply chains. Under Armour's strong brand and distribution network also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The athletic apparel and footwear industry is highly competitive, with intense rivalry among established players like Nike, Adidas, and Under Armour. This competition drives innovation, marketing, and pricing strategies, making it challenging for companies to maintain market share and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.22%
Debt Cost 3.95%
Equity Weight 56.78%
Equity Cost 12.08%
WACC 8.57%
Leverage 76.12%

11. Quality Control: Under Armour, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 2.8

Yield: 6.0

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A-Score: 3.4/10

Value: 7.6

Growth: 2.1

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.34$

Current Price

4.34$

Potential

-0.00%

Expected Cash-Flows