Under Armour (NYSE:UA) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Under Armour (NYSE:UA) announced its quarterly earnings data on Friday. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.03, Zacks reports. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.11 billion. Under Armour had a positive return on equity of 3.01% and a negative net margin of 9.98%. Under Armour updated its Q2 2027 guidance to -0.030–0.010 EPS and its FY 2027 guidance to 0.080-0.120 EPS.

Here are the key takeaways from Under Armour’s conference call:

• Fiscal 2027 revenue outlook was lowered to a mid-single-digit decline, reflecting softer consumer demand and increased promotional activity, particularly in North America and Asia Pacific. Second-quarter revenue is expected to fall at a high-single-digit rate.
• Under Armour maintained its $140 million–$160 million adjusted operating income outlook despite the weaker sales forecast, supported by tighter expense management, lower planned SG&A, and first-quarter adjusted operating income of $52 million, above guidance.
• The company reported gross margin expansion to 54.1% in the first quarter and continues to expect 220–270 basis points of full-year expansion, while inventory declined 3% to $1.1 billion, broadly in line with revenue.
• Management is pursuing a substantial assortment simplification, targeting an additional 25% SKU reduction over the next 18 months after already cutting the Fall/Winter 2026 assortment by 25%. The strategy is to concentrate investment on higher-potential franchises, reduce discount dependence, and improve product productivity.
• Management highlighted early product and brand momentum, including the Bouncy Tee exceeding expectations at its full $65 price, continued strength in HeatGear and Velociti, and plans to make marketing more focused and measurable rather than simply increasing spending.

Under Armour Trading Down 5.5%

UA stock opened at $5.92 on Friday. The business has a fifty day moving average price of $6.24 and a 200 day moving average price of $6.20. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.62 and a quick ratio of 1.08. Under Armour has a fifty-two week low of $3.95 and a fifty-two week high of $7.91. The stock has a market capitalization of $2.53 billion, a price-to-earnings ratio of -5.15 and a beta of 1.59.

Insider Buying and Selling

In other Under Armour news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The shares were bought at an average price of $4.97 per share, for a total transaction of $3,675,419.37. Following the completion of the acquisition, the insider owned 44,179,116 shares of the company’s stock, valued at approximately $219,570,206.52. This trade represents a 1.70% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders acquired a total of 1,178,344 shares of company stock valued at $5,865,147 over the last quarter. 15.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Symmetry Peak Management LLC acquired a new stake in Under Armour in the 4th quarter valued at about $48,000. Quarry LP acquired a new position in shares of Under Armour during the third quarter worth approximately $53,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Under Armour during the fourth quarter valued at approximately $54,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of Under Armour during the third quarter valued at approximately $62,000. Finally, Cerity Partners LLC acquired a new stake in shares of Under Armour in the second quarter valued at approximately $65,000. Institutional investors and hedge funds own 36.35% of the company’s stock.

Under Armour News Roundup

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Under Armour reported fiscal first-quarter adjusted EPS of $0.05, exceeding the $0.02 analyst consensus and marking a small profit amid challenging market conditions. Under Armour slashes revenue outlook as fiscal first quarter sales decline
• Positive Sentiment: Management maintained its full-year fiscal 2027 profitability outlook, with EPS guidance of $0.08 to $0.12, above the currently cited analyst consensus of $0.00. Under Armour Reports First Quarter Fiscal 2027 Results
• Neutral Sentiment: The company issued second-quarter fiscal 2027 EPS guidance of negative $0.03 to negative $0.01, below the $0.05 consensus estimate, while its full-year earnings outlook remains intact. Under Armour quarterly earnings data
• Negative Sentiment: Fiscal first-quarter revenue was approximately $1.10 billion, slightly below the $1.11 billion estimate, as soft consumer demand weighed on sales in North America and Asia-Pacific. Under Armour Posts Lower Revenue on Soft Demand
• Negative Sentiment: Under Armour cut its revenue expectations for fiscal 2027 and warned of a steeper annual sales decline. The weaker top-line outlook and below-consensus second-quarter earnings guidance outweighed the quarterly EPS beat, pressuring the stock. Under Armour Revenue Expectations Update

Wall Street Analyst Weigh In

A number of research firms have recently commented on UA. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Under Armour in a report on Wednesday. Robert W. Baird set a $5.50 price target on shares of Under Armour in a research report on Wednesday, May 13th. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Sell” and an average price target of $5.50.

Under Armour Company Profile

Under Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company’s product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.