Under Armour (UAA) Stock Forecast & Price Target

Under Armour has demonstrated a strong financial outlook, highlighted by a gross margin expansion of approximately 70 basis points to 48.2%, suggesting improved profitability. The company reported a 12% increase in licensing revenue alongside an 8% rise in accessories sales, indicating robust demand across various categories. Additionally, the successful "We Are Football" campaign significantly boosted brand awareness among younger consumers, reflecting successful marketing efforts that could further drive sales growth.

Under Armour's financial outlook is negatively impacted by a projected decline in adjusted EPS for FY26, anticipated to drop over 50% due to increased interest expenses from heightened debt and a tax rate exceeding double that of FY25. The company experienced a 14% decrease in footwear sales, attributed to a challenging demand environment, which indicates ongoing difficulties in managing its product portfolio effectively. Additionally, the 3QF26 guidance fell short of expectations, driven by weak demand and the substantial impact of tariffs, further contributing to operating margin contractions across multiple categories.