Under Armour, Inc.’s (UAA) strategic transformation across its direct-to-consumer (DTC) model, product innovation and global expansion are driving meaningful progress toward sustainable growth and profitability. By prioritizing premium positioning, enhancing customer loyalty and leveraging data-driven retail experiences, the brand is deepening consumer engagement and strengthening its market presence. Coupled with disciplined cost management and improved margin performance, Under Armour’s upbeat fiscal 2025 ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Under Armour (UAA) . This company, which is in the Zacks Textile - Apparel industry, shows potential for another earnings beat.This sports apparel company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarter ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start Q2, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have a beneficial long position in the shares of UA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned ...

Under Armour, Inc. (UAA) has witnessed a significant decline over the past three months, with its shares plummeting 24%, underperforming the Zacks Textile – Apparel industry’s drop of 20.6%. The company also trailed the broader Consumer Discretionary sector’s slip of 5.2% and the S&P 500's dip of 6.1% during the same period. This downturn in the stock price can largely be attributed to growth challenges of the company, and intense competition in the athletic footwear, apparel and accessories market.UAA Stoc ...

Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.6% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 24.76, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, with a 12.5% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation in the near term [6]. - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [7].

Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.4% stock price decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 27.24, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, leading to a 12.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

Under Armour, Inc.  (UAA) is currently trading at a notable low price-to-sales (P/S) multiple, below the averages of the Zacks Textile – Apparel industry and the broader Consumer Discretionary sector. With a forward 12-month P/S of 0.60X, UAA is priced lower than the industry average of 2.22X and the sector average of 1.84X. UAA Looks Attractive From a Valuation StandpointImage Source: Zacks Investment ResearchIn the past month, UAA stock has lost 14.2% compared with the industry’s 5.2% decline. This has co ...

Under Armour (UAA) has been beaten down lately with too much selling pressure. While the stock has lost 13.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that ...

Core Insights - Under Armour, Inc. reported third-quarter fiscal 2025 results with revenues and earnings exceeding the Zacks Consensus Estimate, although both metrics decreased year over year [1][3] - The company has refined its brand focus and updated its product strategy, which has positively impacted performance and led to an improved fiscal 2025 outlook [1] Financial Performance - Adjusted earnings were 8 cents per share, surpassing the Zacks Consensus Estimate of 3 cents, but down from 19 cents in the prior year [3] - Net revenues reached $1,401 million, exceeding the consensus estimate of $1,338 million, but decreased by 5.7% year over year [3] - Wholesale revenues fell 1% to $704.8 million, while direct-to-consumer revenues declined 9.1% to $672.9 million [4] Revenue Breakdown - Apparel revenues decreased 5% to $966.1 million, exceeding the consensus estimate of $909.2 million [5] - Footwear revenues dropped 9% to $301.2 million, below the consensus estimate of $303.6 million [5] - Revenues from Accessories rose 5.7% to $110.4 million, outperforming the consensus estimate of $98 million [5] Geographic Performance - North America revenues declined 7.8% to $843.6 million, exceeding the Zacks Consensus Estimate of $790.7 million [6] - International revenues decreased 1.4% to $558 million, with EMEA revenues increasing 4.9% to $297.9 million [7][6] Margin and Expenses - Gross profit was $665.2 million, down 0.8% year over year, but gross margin expanded 240 basis points to 47.5% [8] - Adjusted selling, general, and administrative expenses rose 5% to $605.5 million, primarily due to higher marketing expenses [9] Financial Position - The company ended the quarter with cash and cash equivalents of $726.9 million and long-term debt of $595.2 million [10] - Under Armour repurchased $25 million worth of its class C common stock, retiring 2.8 million shares [11] Fiscal 2025 Outlook - Revenues are expected to decline 10%, an improvement from the previous forecast of a low-double-digit percentage decline [14] - Adjusted operating income is projected between $185 million and $195 million, an increase from the earlier estimate [17] - Loss per share is expected between 48 cents and 50 cents, with adjusted earnings per share forecasted between 28 cents and 30 cents [18]

Revenue Performance - Total net revenues decreased by 5.7% compared to the same period last year[175] - Wholesale revenue decreased by 1.0%, while direct-to-consumer revenue decreased by 9.1%[175] - Apparel revenue decreased by 5.0%, footwear revenue decreased by 9.0%, and accessories revenue increased by 5.7%[175] - Net revenues decreased by $85.0 million, or 5.7%, to $1,401.0 million for the three months ended December 31, 2024, compared to $1,486.0 million for the same period in 2023[183] - For the nine months ended December 31, 2024, net revenues decreased by $385.9 million, or 8.8%, to $3,983.7 million compared to $4,369.7 million in the same period in 2023[183] - Total net revenues decreased by $385.96 million, or 8.8%, to $3,983.73 million for the nine months ended December 31, 2024, compared to $4,369.68 million in 2023[217] - The decrease in net sales was attributed to both wholesale and direct-to-consumer channels[185] - North America net revenue decreased by 7.8%, while EMEA increased by 4.9%[175] - North America net revenues decreased by $71.7 million, or 7.8%, to $843.6 million, attributed to declines in both direct-to-consumer and licensing revenues[215] - EMEA region net revenues increased by $13.8 million, or 4.9%, to $297.9 million, supported by growth in both wholesale and direct-to-consumer channels[215] - Asia-Pacific net revenues decreased by $55.71 million, or 8.6%, to $590.61 million, impacted by lower sales in both wholesale and direct-to-consumer channels[220] Financial Metrics - Gross margin increased by 240 basis points to 47.5%[175] - Gross profit decreased by $5.5 million to $665.2 million during the three months ended December 31, 2024, with a gross margin increase to 47.5% from 45.1%[190] - Gross profit for the nine months ended December 31, 2024, decreased by $106.7 million to $1,924.0 million, with a gross margin increase to 48.3% from 46.5%[191] - Total operating income decreased by $57.9 million, or 81.1%, to $13.5 million for the three months ended December 31, 2024, compared to the same period in 2023[216] - Other expense, net increased by $50.5 million to $2.6 million during the three months ended December 31, 2024, primarily due to an earn-out related to the sale of MyFitnessPal[206] - Income tax expense decreased by $2.3 million to $6.3 million for the three months ended December 31, 2024, with an effective tax rate of 83.3% compared to 7.2% in the prior year[208] Expenses and Costs - Selling, general and administrative expenses increased by 6.4%[175] - Selling, general and administrative expenses increased by $38.5 million, or 6.4%, to $637.7 million for the three months ended December 31, 2024, as a percentage of net revenues increased to 45.5% from 40.3%[194][197] - Selling, general and administrative expenses increased by $197.5 million, or 11.0%, during the nine months ended December 31, 2024, with a percentage of net revenues rising to 50.1% from 41.1%[197] - License revenues decreased by $5.2 million, or 17.8%, to $23.9 million during the three months ended December 31, 2024, primarily due to lower revenues from licensing partners in North America[186] - Marketing costs decreased by $31.1 million, or 7.1%, but as a percentage of net revenues, they increased to 10.2% from 10.0%[202] - Other costs increased by $228.6 million, or 16.8%, primarily due to higher litigation expenses and an impairment charge of $28.4 million[202] - Interest expense, net increased by $3.2 million to $3.4 million during the three months ended December 31, 2024, primarily due to a decrease in interest income[203] Restructuring and Future Plans - The 2025 restructuring plan was approved with an estimated total cost of $140 million to $160 million[176] - Total costs recorded in restructuring charges for the three months ended December 31, 2024, amounted to $17.764 million[176] - Up to $75 million in cash-related charges are anticipated as part of the restructuring plan, including $30 million in employee severance costs[179] - Restructuring charges increased by $13.9 million, or 100.0%, to $13.9 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to employee-related, facility-related, and other restructuring charges[199] - The company expects trends in gross margin improvements to continue through the remainder of Fiscal 2025, albeit to a lesser extent[192] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $334.0 million to $142.9 million for the nine months ended December 31, 2024, compared to $476.9 million in 2023[233] - Cash flows used in investing activities increased by $27.7 million to $(99.2) million, primarily due to higher capital expenditures and acquisitions[235] - Total capital expenditures for the nine months ended December 31, 2024, were $139.9 million, representing approximately 4% of net revenues, an increase of $23.3 million from $116.5 million in 2023[236] - Cash flows used in financing activities increased by $79.5 million to $(154.5) million, including $80.9 million for repaying Convertible Senior Notes and $65.0 million for share repurchases[237] Liquidity and Financing - As of December 31, 2024, the company had approximately $726.9 million in cash and cash equivalents, sufficient to meet liquidity needs for at least the next twelve months[224] - The company authorized a share repurchase program of up to $500 million, with $65 million already repurchased as of December 31, 2024[229][232] - The company plans to continue reinvesting its non-U.S. subsidiaries' cumulative undistributed earnings of $1.5 billion to fund international growth and operations[226] - The company has a revolving credit facility of $1.1 billion, with no amounts outstanding as of December 31, 2024[238] - As of December 31, 2024, $45.9 million of letters of credit were outstanding under the amended credit agreement[240] - The company repaid $80.9 million of Convertible Senior Notes upon maturity on June 1, 2024, using cash on hand[246] - The company issued $600.0 million of 3.25% senior unsecured notes due June 15, 2026, with interest payable semi-annually[247] - The amended credit agreement requires maintaining a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0[243] - The company incurred capital expenditures of $88.5 million related to the construction of its new global headquarters, designed with sustainability features[236]