Under Armour (UAA) Stock Forecast & Price Target

Under Armour's recent marketing campaign, "We Are Football," has significantly boosted brand awareness among the key demographic of 18-34 year-olds, achieving an increase of approximately 20 points in just six months. The company is also focused on stabilizing its North American segment, with expectations for growth beginning in FY28, while simultaneously rationalizing SKUs, reducing promotions, and cutting costs to enhance operational efficiency. Furthermore, Under Armour's efforts to elevate product design and innovation have regained pricing power, contributing positively to its overall financial outlook.

Under Armour is experiencing significant challenges, as evidenced by its 3QF26 guidance, which was significantly below expectations due to soft demand and the full impact of tariffs. The company's operating margins are projected to contract sharply, with a decline of approximately 385 basis points year-over-year to just 0.4% and a broader expectation of a decline in sales of 6.5%. Additionally, product demand is waning across categories, particularly in footwear, signifying a recalibration of the product portfolio and ongoing struggles within the North American market.