Under Armour

UAA

Market cap $2.06B

Under Armour's restructuring and cost cuts are driving margin gains, leaner operations and stronger profitability momentum.

Mixed sales and profit forecasts from major U.S. retailers such as Target and Home Depot have prompted investors to question if this year's crucial holiday season will yield the windfall typically associated with a year-end shopping surge.

I am downgrading Under Armour from Buy to Hold due to weak recent results, margin pressures, and a challenging North American turnaround. Q1 2026 showed some positives—higher gross margin, lower SG&A, and EMEA growth—but North America sales and guidance disappointed, driving the stock down 20%. Tariff headwinds and intense competition make a clear picture of a turnaround unlikely in the near term, despite some upside potential.

While Under Armour Inc UAA has the potential for a turnaround in the longer term, it could face margin pressure from tariffs and wholesale uncertainty in the near term, according to BofA Securities.

Under Armour, Inc. UAA reported first-quarter fiscal 2026 results that met or exceeded internal expectations but missed Wall Street estimates on Friday.

Under Armour has continued to report concerning revenue trends. Despite strength in EMEA, the brand turnaround is on uncertain grounds. Profitability has shown some progress, but tariffs now look to cause significant pressure from Q2 forward. Under Armour's tariff mitigation will only be reflected gradually. Under Amrour stock doesn't provide an attractive risk-to-reward entry point in my opinion; investors should likely wait for better turnaround signals.

Under Armour, Inc. (NYSE:UAA ) Q1 2026 Earnings Conference Call August 8, 2025 8:30 AM ET Company Participants David E. Bergman - Chief Financial Officer Kevin A.

Under Armour (UAA) shares tumbled Friday after the retailer said it would be half as profitable this fiscal year as it was last year.

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining over 150 points on Friday.

U.S. equities were higher in recent trading, with the Nasdaq on track to set another record closing high, as more companies posted solid earnings. The Dow and S&P 500 were higher as well.