Under Armour (NYSE:UA) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Under Armour beat quarterly earnings estimates, reporting EPS of $0.05 versus the $0.02 consensus, while revenue of $1.10 billion slightly missed the $1.11 billion estimate.
• Management lowered its fiscal 2027 revenue outlook to a mid-single-digit decline and expects second-quarter EPS of negative $0.03 to negative $0.01, citing weaker consumer demand and increased promotions.
• Despite the softer sales outlook, Under Armour maintained its full-year EPS guidance of $0.08–$0.12 and adjusted operating-income target of $140 million–$160 million, supported by cost controls and gross-margin expansion.

Under Armour (NYSE:UA - Get Free Report) issued 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 business had revenue of $1.10 billion for 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 Stock Performance

Shares of UA stock traded down $0.34 during trading on Friday, reaching $5.92. 5,608,344 shares of the company's stock were exchanged, compared to its average volume of 2,544,030. Under Armour has a twelve month low of $3.95 and a twelve month high of $7.91. The firm's fifty day moving average price is $6.24 and its 200-day moving average price is $6.20. The company has a quick ratio of 1.08, a current ratio of 1.62 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $2.53 billion, a PE ratio of -5.11 and a beta of 1.59.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on UA. Weiss Ratings reissued a "sell (d-)" rating on shares of Under Armour in a research report on Wednesday. Robert W. Baird set a $5.50 target price on shares of Under Armour in a report on Wednesday, May 13th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Sell" and an average target price of $5.50.

Insider Transactions at Under Armour

In related news, major shareholder V Prem Et Al Watsa acquired 739,521 shares of Under Armour stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $4.97 per share, with a total value of $3,675,419.37. Following the completion of the transaction, the insider directly owned 44,179,116 shares in the company, valued at $219,570,206.52. This trade represents a 1.70% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders acquired 1,178,344 shares of company stock worth $5,865,147. Company insiders own 15.60% of the company's stock.

Institutional Trading of Under Armour

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Millennium Management LLC increased its holdings in shares of Under Armour by 153.7% during the third quarter. Millennium Management LLC now owns 2,346,929 shares of the company's stock worth $11,336,000 after purchasing an additional 1,421,981 shares during the period. Corient Private Wealth LLC boosted its stake in shares of Under Armour by 99.8% in the second quarter. Corient Private Wealth LLC now owns 2,005,844 shares of the company's stock valued at $13,018,000 after buying an additional 1,002,037 shares during the period. Picton Mahoney Asset Management acquired a new stake in Under Armour during the fourth quarter worth approximately $3,999,000. Marshall Wace LLP acquired a new stake in Under Armour during the fourth quarter worth approximately $3,685,000. Finally, Quinn Opportunity Partners LLC increased its stake in Under Armour by 97.9% during the 4th quarter. Quinn Opportunity Partners LLC now owns 1,425,000 shares of the company's stock worth $6,840,000 after acquiring an additional 705,000 shares during the period. Institutional investors own 36.35% of the company's stock.

Key Headlines Impacting Under Armour

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

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.

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