As we navigate through a very choppy market in 2026, I continue to emphasize that one of the key themes we should be preparing for is a rotation in market leadership, away from the industries thatWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He ha ...

Core Viewpoint - Under Armour Inc. (NYSE: UAA) experienced a significant stock surge of 22.5% week-on-week, driven by increased price targets from investment firms, despite reporting disappointing earnings for Q3 of fiscal year 2026 [1]. Group 1: Price Target Adjustments - Barclays raised its price target for Under Armour to $8 from $6, while Truist Securities increased its target to $8 from $5 [2]. - Barclays maintains a "neutral" stance on the stock, and Truist holds a "hold" recommendation [3]. Group 2: Earnings Performance - Under Armour reported a net loss of $430.8 million for Q3, a significant decline from a net income of $1.2 million in the same period the previous year [3]. - Net revenues fell by 7% to $1.3 billion compared to $1.4 billion year-on-year [4]. - For the nine-month period, the company's net loss widened by 238% to $452 million from $133.8 million in the same period a year earlier, with net revenues decreasing by 4.5% to $3.8 billion from $3.98 billion year-on-year [4].

Core Insights - Under Armour reported third-quarter earnings that exceeded expectations, with earnings per share of $0.09 compared to analyst expectations of a $0.02 loss, leading to a more than 11% increase in shares intra-day [1] - Revenue for the quarter totaled $1.33 billion, a 6% decline on a currency-neutral basis but slightly above the consensus estimate of $1.31 billion [1] Revenue Breakdown - North America revenue fell 10% to $757 million, negatively impacting overall results [2] - International revenue increased 3% to $577 million, with a 1% growth on a currency-neutral basis; EMEA revenue rose 2%, Asia-Pacific declined 5%, and Latin America increased 13% [2] Financial Metrics - Adjusted operating income reached $26 million, excluding litigation reserves and transformation and restructuring costs [3] - Gross margin declined by 310 basis points to 44.4%, primarily due to higher tariffs [3] Future Outlook - Under Armour forecasts fiscal 2026 earnings per share of $0.10 to $0.11, exceeding the average analyst estimate of $0.05 [3] - The company expects full-year revenue to decline by approximately 4%, an improvement from the previous outlook of a 4% to 5% decrease [3]

Under Armour, Inc. (UAA) shares climbed 15.57 percent, up $0.98, to $7.28 on Friday following the company's release of third-quarter financial results, despite reporting lower revenue and a wider loss year over year.The stock was trading at $7.28, compared with a previous close of $6.30. Shares opened at $6.49 and moved between an intraday low of $6.42 and a high of $7.29 on the New York Stock Exchange. Trading volume reached about 12.32 million shares, slightly above the average daily volume of roughly 11 ...

Under Armour (UAA) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +662.50%. A quarter ago, it was expected that this sports apparel company would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise of +33.33%.Over the last fou ...

Financial Performance - Total net revenues decreased by 5.2% compared to the same period last year, with wholesale revenue down 6.4% and direct-to-consumer revenue down 3.9%[165]. - Apparel revenue decreased by 3.3%, footwear revenue decreased by 12.0%, and accessories revenue decreased by 2.5%[165]. - Net revenue decreased by 10.3% in North America, while it increased by 6.0% in EMEA, decreased by 5.1% in Asia-Pacific, and increased by 19.7% in Latin America[165]. - Net revenues for the three months ended December 31, 2025, decreased by $73.3 million, or 5.2%, to $1.3 billion compared to $1.4 billion in the same period of 2024[172]. - Net sales for the nine months ended December 31, 2025, decreased by $182.2 million, or 4.7%, to $3.7 billion from $3.9 billion in the same period of 2024[175]. - The company reported a net loss of $430.8 million for the three months ended December 31, 2025, compared to a net income of $1.2 million in the same period of 2024[171]. Cost and Expenses - Gross margin decreased by 310 basis points to 44.4%[165]. - Selling, general and administrative expenses increased by 4.2%[165]. - Selling, general and administrative expenses increased by $26.8 million, or 4.2%, during the three months ended December 31, 2025, compared to the same period in 2024[185]. - Selling, general and administrative expenses as a percentage of net revenues increased to 50.0% during the three months ended December 31, 2025, compared to 45.5% in 2024[185]. - Marketing and advertising costs decreased by $20.2 million or 12.6%, representing 10.5% of net revenues compared to 11.4% in the previous period[1]. - Other costs increased by $47.0 million or 9.8%, rising to 39.5% of net revenues from 34.1%[1]. - Restructuring charges for the three months ended December 31, 2025, amounted to $74.98 million, significantly higher than $13.95 million in the same period of 2024[186]. - Restructuring charges increased by $61.0 million during the three months ended December 31, 2025, a 437.7% increase compared to the same period in 2024[188]. Restructuring and Future Plans - The company approved a restructuring plan with an updated total of up to $255 million in pre-tax charges, including $107 million in cash-related charges and $148 million in non-cash charges[163]. - The restructuring plan is expected to be substantially complete by the end of Fiscal 2026[163]. - Anticipated negative impact of approximately $80 million to cost of goods sold in Fiscal 2026 due to increased tariffs, expected to impact gross profit by approximately 160 basis points[167]. - The company is focused on long-term growth through increased sales in apparel, footwear, and accessories, as well as expansion in direct-to-consumer and wholesale channels[162]. Cash Flow and Liquidity - Cash provided by operating activities increased by $114.2 million for the nine months ended December 31, 2025, driven by changes in working capital[237]. - As of December 31, 2025, the company had approximately $465 million in cash and cash equivalents[225]. - The company anticipates that cash on hand and cash from operations will be adequate to meet liquidity needs for at least the next twelve months[225]. - Cash flows used in investing activities increased by $574.5 million compared to the nine months ended December 31, 2024, with $601.2 million deposited into a restricted investment related to Senior Notes due 2026[238]. - Total capital expenditures for the nine months ended December 31, 2025, were $72.0 million, approximately 2% of net revenues, a decrease of $67.9 million from $139.9 million in the same period of 2024[239]. - Cash flows provided by financing activities increased by $514.9 million compared to the nine months ended December 31, 2024, including the issuance of $400 million of Senior Notes due 2030[240]. Debt and Compliance - The company issued $400 million in Senior Notes due 2030, bearing interest at a fixed rate of 7.25% per annum, payable semi-annually starting January 15, 2026[254]. - The company is required to maintain a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0, and total indebtedness to consolidated EBITDA ratio not exceeding 3.25 to 1.0[248]. - As of December 31, 2025, the company was in compliance with all applicable covenants under the amended credit agreement[248]. - The amended credit agreement provides for $1.1 billion of revolving credit commitments, expiring on June 16, 2030, with certain conditions for extensions[242]. - The company satisfied and discharged the Senior Notes due 2026 by depositing sufficient funds, thus releasing it from remaining obligations under those notes[252]. - As of December 31, 2025, the company had no outstanding amounts under the revolving credit facility after repaying $200 million of borrowings[243].

Revenue Performance - Third quarter revenue decreased 5% to $1.33 billion, with North America revenue declining 10% to $757 million and international revenue increasing 3% to $577 million[3]. - Fiscal 2026 revenue is expected to decline approximately 4%, with an 8% decline in North America and a 6% decline in Asia-Pacific[7]. - Net revenues for the three months ended December 31, 2025, were $1,327,761, a decrease of 5.2% compared to $1,401,039 in the same period of 2024[18]. - North America segment revenues decreased by 10.3% to $756,726 for the three months ended December 31, 2025, compared to $843,620 in 2024[18]. - Direct-to-consumer revenues decreased by 3.9% to $646,845 for the three months ended December 31, 2025, compared to $672,948 in 2024[20]. - The total net revenue growth (decline) for the nine months ended December 31, 2025, was (4.7)% according to GAAP, with a currency-neutral net revenue decline of (5.5)%[31]. Profitability and Loss - Gross margin declined 310 basis points to 44.4%, primarily due to higher tariffs and pricing headwinds[3]. - The company recorded a net loss of $431 million, including a $247 million valuation allowance on U.S. federal deferred tax assets[6]. - Diluted loss per share was $1.01, while adjusted diluted earnings per share was $0.09[6]. - Gross profit for the three months ended December 31, 2025, was $589,740, representing a gross margin of 44.4%, down from 47.5% in 2024[18]. - The company reported a net loss of $430,827 for the three months ended December 31, 2025, compared to a net income of $1,234 in 2024[18]. - Basic net loss per share for Class A, B, and C common stock was $(1.01) for the three months ended December 31, 2025, compared to $0.00 in 2024[18]. - For the nine months ended December 31, 2025, the net income was $(452,253) thousand, compared to $(133,810) thousand for the same period in 2024, indicating a significant decline[29]. - The adjusted income from operations for the nine months ended December 31, 2025, was $104,221 thousand, compared to $233,710 thousand in 2024[35]. - The company reported an adjusted net income of $60,736 thousand for the nine months ended December 31, 2025, down from $169,767 thousand in 2024[37]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses increased 4% to $665 million, but adjusted SG&A declined 7% to $563 million[3]. - SG&A expenses for fiscal 2026 are expected to decline at a low-double-digit rate, driven by lower marketing costs and restructuring savings[7]. - Adjusted selling, general and administrative expenses for the nine months ended December 31, 2025, were $1,662,599 thousand, a decrease from $1,690,252 thousand in 2024[33]. Future Outlook - Operating loss for fiscal 2026 is expected to be approximately $154 million, with adjusted operating income expected to be around $110 million[7]. - The company expects to recognize remaining restructuring charges by the end of fiscal 2026, with total costs of the restructuring plan now expected to be up to $255 million[5]. - The outlook for the year ending March 31, 2026, includes an estimated adjusted income from operations of approximately $110 thousand[42]. - The GAAP diluted net loss per share for the year ending March 31, 2026, is estimated to be between $(1.25) and $(1.24)[43]. Balance Sheet and Cash Flow - Total current assets increased to $2,989,031 as of December 31, 2025, from $2,329,097 as of March 31, 2025[26]. - Total liabilities rose to $3,194,924 as of December 31, 2025, compared to $2,410,593 as of March 31, 2025[26]. - The company reported a net cash provided by operating activities of $257,079 thousand for the nine months ended December 31, 2025, compared to $142,880 thousand in 2024[29]. - The net cash used in investing activities was $(673,703) thousand for the nine months ended December 31, 2025, compared to $(99,194) thousand in 2024[29]. Restructuring Charges - The company experienced a significant increase in restructuring charges, which amounted to $74,980 for the three months ended December 31, 2025, compared to $13,945 in 2024[18]. - The company-owned and operated door count increased to 450 as of December 31, 2025, from 448 in 2024, with North America total doors rising to 199[45].

格隆汇2月6日｜安徳玛第三季度净营收13.3亿美元，预估13.1亿美元。第三季度调整后每股收益0.090美 元。第三季度库存10.7亿美元，预估11.8亿美元。安徳玛预计全年调整后每股收益0.10美元至0.11美元。 ...

Core Insights - Under Armour reported a third-quarter revenue decrease of 5% to $1.33 billion, with a 10% decline in North America and a 3% increase in international revenue [6][10]. - The company experienced an operating loss of $150 million, with adjusted operating income of $26 million after excluding certain expenses [6][10]. - The CEO expressed optimism about the company's transformation and brand momentum, indicating that the December quarter marked a challenging phase but expects greater stability moving forward [2][6]. Financial Performance - Revenue decreased 5% to $1.33 billion, with North America revenue down 10% to $757 million and international revenue up 3% to $577 million [6][10]. - Gross margin declined by 310 basis points to 44.4%, primarily due to higher tariffs and pricing headwinds [6][10]. - Selling, general and administrative (SG&A) expenses increased 4% to $665 million, but adjusted SG&A declined 7% to $563 million when excluding litigation and transformation expenses [6][10]. Restructuring and Transformation - The company is undergoing a restructuring plan expected to cost up to $255 million, with $178 million recorded in restructuring and impairment charges to date [7][10]. - The restructuring plan aims to improve financial and operational efficiency, with a focus on better products and disciplined market presence [2][7]. Outlook - For fiscal 2026, revenue is expected to decline approximately 4%, with a projected operating loss of around $154 million [10]. - Adjusted diluted earnings per share are anticipated to range from $0.10 to $0.11, compared to a previous outlook of $0.03 to $0.05 [10]. Inventory and Liquidity - Inventory decreased by 2% to $1.1 billion, indicating improved inventory management [6][10]. - Cash and cash equivalents totaled $465 million at quarter-end, with no borrowings under the $1.1 billion revolving credit facility [6][10].

Under Armour, Inc. (NYSE:UAA) will release earnings for its third quarter before the opening bell on Friday, Feb. 6.Analysts expect the Baltimore, Maryland-based company to report quarterly loss of 1 cent per share, versus a year-ago profit of 8 cents per share. The consensus estimate for Under Armour's quarterly revenue is $1.31 billion (it reported $1.4 billion last year), according to Benzinga Pro.On Nov. 6, Under Armour reported fiscal second-quarter 2026 results that beat Wall Street expectations but l ...