Under Armour (Class C) (UA)
NYSEConsumer DiscretionaryApparel - ManufacturersSnapshot 2026-09-04
$5.12+0.39%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryApparel - ManufacturersSnapshot 2026-09-04
Broken: Primary pillar broken — Revenue stabilizes or grows modestly: Q1 FY27 rev -3.0% vs -1.0% target.
Under Armour is working on a restructuring plan to improve costs. The company aims to raise operating income to $116 million in fiscal Q4 2026. Gross margin is targeted to increase to about 47.5% next quarter. A long-term shoe deal with Stephen Curry boosts brand and sales.
The company is still loss-making with negative free cash flow. Revenue declined 1% last quarter and analysts expect a further 1% drop. Operating income remains negative and gross profit fell recently. Closing the Portland office may hurt efficiency.
The stock trades about 41% below our fair value near $11. Analysts expect about 1% revenue decline. The price reflects weak near-term growth and ongoing losses, which matches current company performance.
Breaks if: gross margin falls below 47.2% in 2026-Q4
Breaks if: operating income falls below $96 million in 2026-Q4
restructuring efforts stall or reverse
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. The company is currently loss-making and has a mixed management execution track record, with some initiatives on track but overall financial performance weak.
The market appears to have priced in a low expectations gap, indicating that investors are not anticipating significant improvements in performance. Valuation is considered cheap compared to peers, but the overall sentiment remains cautious.
Fundamentals may continue to struggle in the near term, especially given the recent weak financial performance and a 40% probability of missing earnings expectations. Management's efforts to improve operating income and expand gross margins show some promise, but results have been inconsistent.
The long-term thesis hinges on several factors, including management's ability to execute its restructuring plan and improve financial efficiency. Additionally, external factors like inflation trends and the performance of sector peers will be crucial in shaping future outcomes.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company’s restructuring plan aims for efficiency. This could improve financial health. However, there are concerns about lower revenue due to soft demand. A recent short report raised worries about the company’s financial health.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue the restructuring plan to enhance financial and operational efficiencies.
Breaks if: revenue declines more than 1% year-over-year in FY27
In the next 1 to 3 years, UA's performance will depend on management execution and external market conditions. Not investment advice.