Under Armour (UAA) Stock Forecast & Price Target

Under Armour has demonstrated a positive trajectory in financial performance, highlighted by a 12% increase in licensing revenue and significant growth in both North American and international markets. The company's gross margin has expanded by approximately 70 basis points to 48.2%, indicating improved profitability amidst increased investment in marketing and brand campaigns. Additionally, consumer engagement metrics, such as improved brand perception and commerce NPS scores, suggest strong market positioning and potential for continued growth in the athletic apparel sector.

Under Armour's financial outlook appears negative due to an anticipated decline of over 50% in adjusted earnings per share for FY26, driven by increased debt leading to higher interest expenses and a significantly increased tax rate. Additionally, the company's footwear segment exhibited a notable decline of 14%, mirroring overall softness in demand and challenges in product portfolio management. Finally, operating margins are projected to contract sharply by 790 basis points year-over-year, alongside sales forecasts indicating a low double-digit decline in North America, particularly due to weak wholesale orders.