Key Takeaways for Under Armour Stock as of August 2026
- Revenue Downgrade: Under Armour cut its FY2027 sales outlook to a mid-single-digit decline, down from roughly flat, while holding adjusted operating income at $140M-$160M.
- Margin Overdelivery: Q1 adjusted operating income of $52M cleared the $30M-$40M guide, and gross margin jumped 590bps YoY to 54.1%, lifted by IEEPA tariff refunds.
- Traffic Slump: Revenue fell 3% to $1.1B, North America down 9%, e-commerce off 12%.
- Full-Price Reset: CEO Kevin Plank is cutting SKUs another 25% over 18 months and pushing full-price selling, betting the Bouncy Tee’s $65 sell-through becomes the template for reviving demand without discounts.
See how Under Armour defended its profit outlook even as its sales guide dropped: track UAA’s margin and guidance trends on TIKR for free →
Under Armour Cut Its Revenue Guide but Refused to Give Up Profit
Under Armour (UAA) lowered its fiscal 2027 revenue outlook on August 7 to a mid-single-digit decline, down from the roughly flat trajectory it guided in May, while holding adjusted operating income at $140 million to $160 million. The first quarter showed a business trading top-line ambition for control.
CEO Kevin Plank opened the Q1 earnings call by naming the trade-off directly: “We’re lowering our revenue outlook for the year while maintaining our adjusted operating income expectation.” Softer demand across North America and Asia Pacific forced the cut, but the profit line is what Plank kept returning to.
The quarter itself came in ahead of plan on the bottom line. Revenue slipped 3% to $1.1 billion, yet adjusted operating income of $52 million cleared the company’s own $30 million to $40 million outlook, and adjusted earnings reached $0.05 a share against a guide for less. Gross margin expanded 590 basis points to 54.1%, though 640 of those points came from IEEPA tariff refunds tied to costs booked a year earlier.
Underneath the beat, demand deteriorated as the quarter ran on. North America revenue fell 9% and Asia Pacific slid 7% on softness in China and Southeast Asia, while direct-to-consumer dropped 6% with e-commerce off 12%. EMEA bucked the trend, growing 12%, and inventory closed down 3% at $1.1 billion, roughly in line with the sales decline.
Product discipline anchors the reset. Under Armour has already cut 25% of its SKUs versus two years ago and now targets another 25% reduction over the next 18 months, concentrating spend behind franchises like HeatGear and Velociti. The Bouncy Tee, launched in May at a full $65 price and selling through above plan, is the model management wants to repeat: fewer products carrying higher full-price sell-through, with far less reliance on promotion.
The near term stays soft. Under Armour guided second-quarter revenue to a high-single-digit decline with an adjusted operating loss per share of $0.01 to $0.03, and it expects the full-year restructuring program to reach $305 million and wrap by December. Management also took marketing lower as a share of revenue, a call Plank framed as sharper spending rather than retreat. What holds Under Armour stock together right now is the profit line the company refuses to move.
Want to see whether that $52 million profit beat can hold as revenue keeps sliding? Analyze Under Armour stock on TIKR for free →
TIKR Values Under Armour Stock at $17, Pricing In a Full Turnaround
TIKR’s mid-case model values Under Armour at $17 by March 2031, implying 184% total return from the current price of $6, or 25% annualized over the next 4.6 years.
A 25% annualized return prices Under Armour stock as a full recovery story rather than a value trap, a return profile that assumes the brand reclaims the pricing power it has spent two years rebuilding.
The target is reachable on the same discipline the quarter displayed: adjusted operating income beating its guide while the company defends full-year profit through a revenue cut. The full-price playbook behind the Bouncy Tee, scaled across a leaner SKU base, is what carries the model from $6 to $17.
TIKR’s model sees 184% upside to a $17 target. See the full Under Armour valuation on TIKR for free →
Should You Invest in Under Armour, Inc.?
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Pull up Under Armour, Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
