Under Armour (NYSE:UA) Issues Quarterly Earnings Results

Under Armour (NYSE:UA) announced its quarterly earnings results on Friday. The company reported $0.09 earnings per share (EPS) for the quarter, Zacks reports. Under Armour had a negative net margin of 1.74% and a positive return on equity of 1.27%. Under Armour updated its FY 2026 guidance to 0.10-0.110 EPS.

Here are the key takeaways from Under Armour’s conference call:

• Under Armour says its operational turnaround is gaining traction after SKU rationalization and targeted leadership moves (e.g., Kara Trent, Adam Peake, Eric Liedtke), and adjusted results beat expectations with a modest upward revision to full‑year adjusted operating income.
• GAAP results were materially depressed by one‑time items — a $99M litigation reserve, $75M of Q3 restructuring (and $224M total to date) and a $247M non‑cash valuation allowance on U.S. deferred tax assets — producing a $1.01 diluted loss per share despite positive adjusted EPS.
• Footwear remains the weakest category with year‑to‑date sales down about 14% and Q3 footwear revenue down 12%, prompting assortment cuts and a reset that the company expects to stabilize in fiscal 2027.
• Management highlights improving product and brand momentum — stronger HeatGear/ColdGear, Icon Fleece and women’s franchises, plus early successful launches (Velociti Elite 3, Assert 11, HB Low, Sola, Arc 96) showing higher ASPs, better sell‑through and more favorable wholesale engagement.
• Liquidity and working capital: inventory declined ~2% to just over $1B, cash of $465M plus $600M in restricted investments earmarked for upcoming debt, and no amounts outstanding on the $1.1B revolver after a ~$200M paydown, providing runway but with restrictions on the $600M.

Under Armour Stock Up 18.5%

NYSE:UA traded up $1.14 during mid-day trading on Friday, hitting $7.29. 9,136,391 shares of the company’s stock were exchanged, compared to its average volume of 7,096,548. The company has a market cap of $3.12 billion, a PE ratio of -34.70 and a beta of 1.74. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.69 and a quick ratio of 1.10. Under Armour has a one year low of $3.95 and a one year high of $7.27. The business has a fifty day moving average price of $5.09 and a 200 day moving average price of $5.01.

Insider Buying and Selling at Under Armour

In related news, major shareholder V Prem Et Al Watsa acquired 1,112,119 shares of Under Armour stock in a transaction that occurred on Wednesday, January 28th. The stock was bought at an average price of $6.21 per share, with a total value of $6,906,258.99. Following the transaction, the insider directly owned 43,000,872 shares in the company, valued at approximately $267,035,415.12. This represents a 2.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In the last quarter, insiders purchased 42,448,155 shares of company stock valued at $219,067,338. Corporate insiders own 15.60% of the company’s stock.

Hedge Funds Weigh In On Under Armour

Several large investors have recently modified their holdings of UA. Millennium Management LLC raised its holdings in Under Armour by 153.7% in the third quarter. Millennium Management LLC now owns 2,346,929 shares of the company’s stock worth $11,336,000 after buying an additional 1,421,981 shares during the last quarter. Corient Private Wealth LLC increased its holdings in shares of Under Armour by 99.8% in the 2nd quarter. Corient Private Wealth LLC now owns 2,005,844 shares of the company’s stock worth $13,018,000 after purchasing an additional 1,002,037 shares in the last quarter. XTX Topco Ltd bought a new stake in shares of Under Armour in the 3rd quarter worth $1,465,000. Squarepoint Ops LLC boosted its position in shares of Under Armour by 1,005.8% during the third quarter. Squarepoint Ops LLC now owns 307,687 shares of the company’s stock valued at $1,486,000 after buying an additional 279,863 shares during the last quarter. Finally, Balyasny Asset Management L.P. increased its holdings in Under Armour by 608.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 249,659 shares of the company’s stock worth $1,620,000 after buying an additional 214,439 shares in the last quarter. Hedge funds and other institutional investors own 36.35% of the company’s stock.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Under Armour in a research note on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company presently has an average rating of “Sell”.

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.