Under Armour Today | --- | --- | --- | |---------------------|-------|-------| | | | | | | | | | UAA | | | | Under Armour | | | | $7.46 | | | | -0.33 (-4.24%) | | | | 52-Week Range $6.17 | | | | ▼ | | | | $9.50 | | | | P/E Ratio 13.82 | | | | Price Target $7.50 | | | | | | | Add to Watchlist Global athletic apparel and footwear brand Under Armour Inc. NYSE: UAA is steadily gaining ground on its turnaround plan. The company had a setback when former CEO Stephanie Linnartz abruptly resigned on April 1, 2024, ...

BALTIMORE, Sept. 9, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) today announced an update to its Fiscal 2025 restructuring plan, including additional initiatives to optimize the company's strategic supply chain capabilities and overall business performance. Previously, the company expected to incur pre-tax restructuring and related charges of approximately $70 million to $90 million in connection with its Fiscal 2025 restructuring plan. Following further evaluation, the company has identified ap ...

Investment Thesis - Under Armour currently receives a sell rating due to an unattractive risk-reward profile, characterized by elevated valuation, negative growth metrics, and increased risk levels [2][6][14] - Nike is presented as a superior investment option, offering stronger financial health, higher growth metrics, and better competitive advantages [2][15] Under Armour's Performance - Over the past five years, Under Armour has underperformed significantly, with a negative performance of -56.57%, compared to the S&P 500's 87.90% and competitors like Nike (-0.86%) and Lululemon Athletica (41.40%) [3] Current Valuation - Under Armour's current P/E Non-GAAP [FWD] Ratio is 35.48, which is 126.64% above the sector median of 15.65, indicating overvaluation [4][10] - The valuation metrics show that Under Armour is more expensive than competitors like Nike (25.77) and Lululemon Athletica (18.43) [10] Growth Outlook - Under Armour exhibits negative revenue growth rates, with a forward revenue growth rate of -3.88% and a negative EPS GAAP growth rate of -23.22%, both significantly below the sector median [5][7] Profitability Metrics - The company has a weak EBIT margin of 3.98%, which is 49.65% below the sector median of 7.90%, and a negative return on common equity of -4.36% compared to the sector median of 11.53% [8][9][12] Comparison with Competitors - Under Armour's growth and profitability metrics are inferior to those of competitors like Nike and Lululemon Athletica, reinforcing the conclusion that its current valuation is too high [11][12] - The company's EBIT margin is significantly lower than Nike's (13.15%) and Lululemon Athletica's (23.02%), indicating a weaker competitive position [12][13] Risk Analysis - Under Armour has a high beta factor of 1.66, indicating greater volatility compared to the broader market and competitors, which further highlights its elevated risk level [13]

Under Armour (UAA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this sports apparel company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between tren ...

Under Armour, Inc. (UAA) reported first-quarter fiscal 2025 results, wherein both the top and bottom lines beat their respective Zacks Consensus Estimate. However, both metrics dropped year over year. Revenue & Earnings Picture The Baltimore-based company reported adjusted earnings of 1 cent per share, which beat the Zacks Consensus Estimate of an adjusted loss of 8 cents. However, the bottom line decreased from the year-ago figure of 2 cents. Meanwhile, net revenues of $1,183.7 million surpassed the Zacks ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was down 10% to $1.2 billion, with a 14% decline in North America due to softer full-price wholesale demand and lower sales to the off-price channel [30] - Gross margin increased by 110 basis points to 47.5%, driven by pricing benefits from lower discounting and supply chain improvements [33][34] - SG&A expenses increased 42% to $837 million, but adjusted SG&A expenses were down 6% to $555 million due to cost management actions [35] Business Line Data and Key Metrics Changes - Apparel revenue was down 8%, footwear down 15%, and accessories down 5%, with declines across most categories [32] - Direct-to-consumer (DTC) revenue declined 12%, with a 25% decline in e-commerce due to reduced promotional activity [32] - Licensing revenue was down 14%, primarily due to declines in North American and Japanese markets [32] Market Data and Key Metrics Changes - EMEA revenue was flat on a reported and currency-neutral basis, with strength in DTC partially offset by a slight decline in wholesale [31] - APAC revenue was down 10% or 7% on a currency-neutral basis, driven by declines in wholesale and DTC amid a softening macro environment [31] - Latin America revenue increased by 16% or 12% on a currency-neutral basis, showing solid growth among regional distributors [31] Company Strategy and Development Direction - The company is executing its "Protect This House" strategy, focusing on brand authenticity and elevating its culture [4][5] - A 25% SKU/style count reduction is being implemented to streamline operations and focus on high-return products [24] - The appointment of Eric Liedtke as EVP of Brand Strategy aims to enhance brand marketing and consumer insights [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to deliver on sales growth guidance, emphasizing the importance of team execution and strategic clarity [43] - The company anticipates a low double-digit percentage decline in full-year revenue, with regional variations expected [37] - Management highlighted the need for improved storytelling and marketing to connect with younger consumers [46] Other Important Information - The company is focusing on elevating consumer experiences across direct-to-consumer and wholesale businesses, with a new flagship store opening in Baltimore [27] - The loyalty program, UA Rewards, has grown to nearly 5 million members, contributing positively to revenue and engagement [28] - The company is increasing investment in paid social media influencers to drive brand engagement [19] Q&A Session Summary Question: Confidence in sales growth guidance for the second half of the year - Management believes they have a healthy view of the business and are making prudent decisions to improve brand performance [43] Question: Evolution of marketing and brand strategy - Management emphasized the importance of product, story, and region working together, and highlighted the need for aggressive marketing in North America [46] Question: SKU reduction strategy and its impact - Management stated that the SKU reduction will be strategic and surgical, focusing on high-performance products and improving communication of their benefits [49] Question: Units versus price expectations in revenue guidance - Management is focusing on average selling price (ASP) growth while reducing lower-margin products to drive gross margin expansion [50] Question: Approach to share buybacks - Management is cautious about share buybacks this year, evaluating cash flow and investment opportunities before making decisions [51] Question: Brand performance in EMEA and APAC - Management noted that EMEA is showing strong momentum, while APAC faces more complex macro pressures [53]

Core Insights - Under Armour is experiencing early progress in its restructuring efforts, which is reflected in its first-quarter fiscal 2025 results that exceeded expectations [3][5] - The company reported a 10% year-over-year decline in revenue, totaling $1.18 billion, but this was above analysts' consensus estimate of $1.14 billion [3][5] - Fiscal 2025 revenue is projected to decline at a low double-digit percentage rate, with earnings expected to swing to a loss between 53 cents and 56 cents per share [5] Financial Performance - Under Armour recognized $34 million of the estimated $70 to $90 million in restructuring charges, with the remainder anticipated in fiscal 2025 [2] - North America revenue decreased by 14%, amounting to $709.3 million [3] - The company reported a per-share loss of 70 cents, which was significantly wider than the expected loss of 27 cents, but posted an adjusted profit of 1 cent per share, contrary to the anticipated adjusted loss of 8 cents [4] Market Reaction - Following the earnings report, Under Armour's shares surged nearly 20% to $7.74, although they remain down about 12% year-to-date in 2024 [5]

Under Armour (NYSE:UA) stock is gaining on Thursday after the company reported positive earnings for its fiscal first quarter of 2025. The latest earnings report from Under Armour starts with its adjusted earnings per share of 1 cent. That's a massive surprise compared to the -8 cents per share Wall Street was expecting. It's also better than the -6 cents from the same time last year. Adding to that is revenue of $1.18 billion for the fiscal first quarter of 2025. That's above the $1.14 billion that analyst ...

Core Insights - Under Armour Inc's shares increased by 17.6% to $7.61, marking its best session since October 2018, following a surprise quarterly profit and an improved fiscal 2025 outlook [1] - The company reported adjusted earnings of 1 cent per share on revenue of $1.18 billion for the second quarter, surpassing analysts' expectations [1] - CEO Kevin Plank highlighted the company's "strongest product organization" in years [1] Stock Performance - Under Armour's stock is trading at levels not seen since a bear gap in mid-March, and it has rebounded above its 120-day moving average [2] - The stock is up 13.9% this quarter but remains down nearly 14% year-to-date in 2024 [2] Options Activity - There has been a significant increase in options trading, with bears outpacing bulls; 12,000 calls and 33,000 puts have been exchanged, which is 82 times the average intraday volume [3] - The most activity is noted at the September 7.50 put, indicating a bearish sentiment [3] - Under Armour's put/call open interest ratio (SOIR) stands at 8.18, ranking higher than 95% of readings from the past year, reflecting a consistent preference for bearish bets [3] Short Selling - Short interest in Under Armour has increased by 10.5% over the last two reporting periods, with 25.08 million shares sold short, representing 13.3% of the stock's available float [4]

Core Viewpoint - Under Armour reported a revenue decline of 10.1% year-over-year for the quarter ended June 2024, with a total revenue of $1.18 billion, but exceeded the Zacks Consensus Estimate by 3.89% [1] Financial Performance - Revenue for the quarter was $1.18 billion, down 10.1% from the previous year, with an EPS of $0.01 compared to $0.02 a year ago [1] - The revenue surprise was +3.89% over the Zacks Consensus Estimate of $1.14 billion, while the EPS surprise was +112.50% against a consensus estimate of -$0.08 [1] Regional Revenue Breakdown - North America: $709.26 million, exceeding the estimate of $668.52 million, but down 14.2% year-over-year [4] - Asia-Pacific: $181.84 million, below the estimate of $190.10 million, representing a -10.1% change year-over-year [5] - EMEA: $226.89 million, above the estimate of $215.88 million, with a slight increase of +0.1% year-over-year [6] - Latin America: $64.41 million, surpassing the estimate of $57.63 million, showing a year-over-year increase of +15.6% [7] Product Revenue Breakdown - Net Sales: $1.16 billion, slightly below the estimate of $1.17 billion, down 11.9% year-over-year [8] - Footwear: $310.39 million, below the estimate of $313.87 million, down 14.7% year-over-year [9] - Accessories: $92.55 million, significantly below the estimate of $147.57 million, down 5.4% year-over-year [9] - License revenues: $21.67 million, compared to the estimate of -$28.82 million, down 13.6% year-over-year [10] - Apparel: $757.79 million, exceeding the estimate of $704.79 million, down 8.1% year-over-year [11] - Corporate Other: $1.27 million, significantly below the estimate of $5.72 million, down 77.9% year-over-year [12] Distribution Channel Revenue - Wholesale: $680.51 million, exceeding the estimate of $617.04 million, down 8.3% year-over-year [13] Stock Performance - Under Armour shares have returned -6.2% over the past month, compared to the Zacks S&P 500 composite's -6.5% change, with a current Zacks Rank of 3 (Hold) [13]