Under Armour (UAA) Stock Forecast & Price Target

Under Armour demonstrates a positive outlook as it has projected an increase in adjusted selling, general, and administrative (SG&A) expenses driven by higher marketing investments, which are expected to strengthen brand awareness and consumer engagement. The company reported a 12% growth in licensing revenues, reflecting robust demand across both North America and international markets, while accessories sales rose by 8%, indicating strong performance in training and sportswear segments. Furthermore, Under Armour achieved an approximate 70 basis point expansion in gross margin to 48.2%, underscoring improved operational efficiency and profitability amidst increasing revenues.

The outlook for Under Armour's stock is negative due to a projected decline in adjusted EPS for FY26 by over 50%, driven by higher interest expenses from increased debt and a significant rise in the effective tax rate. Additionally, footwear sales are expected to drop by 14% across all categories, indicating persistent challenges in demand and issues related to product portfolio management. Furthermore, the company anticipates a significant contraction in operating margins, with guidance pointing to declines in key regions, particularly North America, compounded by soft wholesale orders and the impact of tariffs.