Under Armour (UAA) Stock Forecast & Price Target

Under Armour is supported by a turnaround thesis built on brand elevation, product innovation, and tighter assortment management that should improve full-price selling and reduce promotions. In 1Q, revenue was $1.1 billion and down 4.4% constant currency, but gross margin expanded to 54.1% and operating margin reached 4.7% as SG&A growth stayed below guidance, showing operating leverage even in a soft demand environment. With FY27 EPS forecast at $0.10 and FY28 at $0.20, along with expected wholesale improvement, sequential ecommerce stabilization, and $30 million of added marketing, the company appears positioned for modest growth and healthier margins.

Under Armour is facing a weak fundamental setup because 2Q guidance came in materially below Street expectations, with traffic trends worsening sequentially through 1Q and into 2Q amid a more promotional retail environment. Management now expects FY27 revenues to decline in the mid-single digits, including low- to mid-single-digit declines in North America and low-single-digit declines in EMEA and APAC, while 4Q already showed a constant-currency revenue decline of about 4% and gross margin pressure from tariffs, product costs, and pricing headwinds. Although lower SG&A and reduced marketing may support FY27 EPS of $0.08-$0.12 and some margin expansion, the outlook remains fragile because full-priced demand at higher price points appears uncertain and brand momentum has yet to improve.