Core Insights - Under Armour, Inc. reported its unaudited financial results for the fourth quarter and full fiscal year 2025, indicating a strategic reset aimed at sustainable growth and brand relevance [1][2]. Financial Performance Fourth Quarter Fiscal 2025 Review - Revenue decreased by 11% to $1.2 billion, with North American revenue down 11% to $689 million and international revenue down 13% to $489 million [6][17]. - Gross margin improved by 170 basis points to 46.7%, attributed to supply chain benefits and reduced discounting [6][19]. - The company experienced an operating loss of $72 million, with an adjusted operating loss of $36 million [6][30]. - Net loss was $67 million, with an adjusted net loss of $35 million [6][30]. Full Year Fiscal 2025 Review - Total revenue fell by 9% to $5.2 billion, with North American revenue down 11% to $3.1 billion and international revenue down 6% to $2.1 billion [6][17]. - Gross margin increased by 180 basis points to 47.9%, driven by lower costs and reduced discounting [6][19]. - The company reported a net loss of $201 million, with an adjusted net income of $135 million [6][30]. Share Buyback Program - Under Armour repurchased $25 million of its Class C common stock in the fourth quarter, totaling 12.8 million shares repurchased for $90 million as part of a $500 million program [5]. Restructuring Plan - The Fiscal 2025 Restructuring Plan aims to enhance financial and operational efficiencies, with expected charges between $140 million and $160 million [7]. - As of the end of the fourth quarter, the company recognized $58 million in restructuring and impairment charges [7]. First Quarter Fiscal 2026 Outlook - Revenue is projected to decline by 4% to 5% compared to the first quarter of fiscal 2025, with expectations of a gross margin increase of 40 to 60 basis points [13]. - Selling, general, and administrative expenses are anticipated to decrease by approximately 40% compared to the previous year [13]. - Operating income is expected to be between $5 million and $15 million, with adjusted operating income forecasted to be between $20 million and $30 million [13][32].

Financial Performance - Under Armour Inc is expected to report a loss of nine cents per share on revenue of $1.16 billion, significantly lower than the same quarter last year [1] - Year to date, Under Armour's stock is down 27.9% [1] Stock Movement and Analyst Sentiment - The stock was up 4.5% at $5.97, but has faced resistance at the $6 level since an April 3 bear gap [1] - The majority of analysts are bearish, with 20 out of 23 analysts maintaining a "hold" or worse rating, and Telsey Advisory has reduced its price target from $10 to $7 [3] - The analyst consensus price target is currently at $7.67 [3] Historical Stock Behavior - Over the last two years, Under Armour stock has only closed three post-earnings sessions lower, with the most recent decline occurring in February [4] - The stock has averaged an 8% next-day swing following earnings reports, which is lower than the 12.5% move that options markets are currently pricing in [4]

Core Viewpoint - Wall Street analysts anticipate Under Armour (UAA) will report a quarterly loss of $0.09 per share, reflecting a significant year-over-year decline of 181.8%, with revenues expected to be $1.16 billion, down 13.1% from the previous year [1] Earnings Estimates - Over the last 30 days, there has been a 33.3% upward revision in the consensus EPS estimate for the quarter, indicating a collective reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections by Product - Analysts forecast 'Net revenues by product- Footwear' to reach $300.17 million, indicating a year-over-year decline of 11.1% [4] - 'Net revenues by product- Apparel' are expected to be $758.05 million, reflecting a decrease of 13.6% year-over-year [5] - 'Net revenues by product- Net Sales' are projected at $1.12 billion, down 14.1% from the year-ago quarter [5] - 'Net revenues by product- Accessories' are estimated at $80.22 million, indicating a decline of 10.3% from the prior year [5] - 'Net revenues by product- License revenues' are expected to reach $24.53 million, down 13.8% year-over-year [6] Revenue Projections by Distribution Channel - 'Net revenues by distribution channel- Wholesale' are projected to be $735.44 million, reflecting a year-over-year decline of 13.5% [6] - 'Net revenues by distribution channel- Direct to Consumer' are expected to be $396.87 million, indicating a change of -12.7% from the prior year [7] Regional Revenue Estimates - 'Net revenues- North America' are estimated at $661.06 million, down 14.4% from the previous year [7] - 'Net revenues- Asia-Pacific' are projected at $174.60 million, indicating a significant decline of 23% year-over-year [8] - 'Net revenues- EMEA' are expected to reach $274.97 million, reflecting a change of -3.2% from the prior year [8] - 'Net revenues- Latin America' are projected at $50.19 million, indicating a minimal decline of 0.1% [8] Company Metrics - Analysts estimate 'Total Doors' will arrive at 465, an increase from 440 reported in the same quarter last year [9] - Over the past month, Under Armour shares have recorded a return of +1.6%, compared to the Zacks S&P 500 composite's +11.3% change [9] - Under Armour holds a Zacks Rank 2 (Buy), suggesting it may outperform the overall market in the upcoming period [9]

Company Overview - Under Armour (UAA) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with a consensus EPS estimate of a loss of $0.09 per share, representing a -181.8% change from the previous year [1][3] - Revenues are anticipated to be $1.16 billion, down 13.1% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 13, 2025, and could influence the stock price significantly depending on whether the actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 33.33% higher in the last 30 days, indicating a more optimistic outlook from analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model shows a positive Earnings ESP of +20.75% for Under Armour, suggesting a likelihood of beating the consensus EPS estimate [10][11] - The company currently holds a Zacks Rank of 2 (Buy), which further supports the expectation of an earnings beat [11] Historical Performance - Under Armour has a strong track record, having beaten consensus EPS estimates in the last four quarters, including a notable surprise of +166.67% in the most recent quarter [12][13] Industry Context - In comparison, Crocs (CROX), another player in the textile-apparel industry, is expected to report earnings of $2.51 per share for the same quarter, reflecting a -16.9% year-over-year change, with revenues projected at $909.58 million, down 3.1% [17] - Crocs has a negative Earnings ESP of -0.32% and a Zacks Rank of 4 (Sell), making it challenging to predict an earnings beat [18]

Core Viewpoint - Under Armour (UAA) shows potential for significant upside, with a mean price target of $8.47 indicating a 46% increase from the current price of $5.80 [1] Price Targets and Estimates - The mean estimate consists of 15 short-term price targets with a standard deviation of $2.97, indicating variability among analysts [2] - The lowest estimate is $4, suggesting a 31% decline, while the highest estimate predicts a surge of 158.6% to $15 [2] - Analysts' price targets are often questioned for their reliability, as they may mislead investors rather than provide accurate guidance [3][7] Earnings Estimates - Analysts are optimistic about UAA's earnings, with a consensus indicating better-than-previously estimated earnings [4] - A positive trend in earnings estimate revisions has historically correlated with stock price movements, suggesting potential upside [11] - Over the last 30 days, one estimate has increased, leading to a 0.4% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the extent of UAA's potential gains, it does provide a directional guide for price movement [13]

Core Insights - Under Armour, Inc. (UAA) is undergoing a strategic transformation focusing on direct-to-consumer (DTC) model, product innovation, and global expansion to achieve sustainable growth and profitability [1][2] DTC Model and Customer Engagement - The company is prioritizing premium positioning and enhancing customer loyalty through a data-driven retail experience, which is deepening consumer engagement and strengthening market presence [1] - Under Armour has shifted its DTC approach to focus on full-price sales, reducing promotions and discounts, which has led to increased average unit prices and overall order values, thereby enhancing profitability [5] - The loyalty program has seen significant growth, with 4 million new members in Q3 of fiscal 2025, bringing total North American members to 17 million, resulting in stronger customer retention and deeper brand engagement [6] Product Innovation and Global Expansion - Under Armour is enhancing its premium status through product innovation, with new releases like the Fox 1 basketball shoe and UA Icon Heavyweight Hoodie resonating with younger consumers, driving strong sell-through and margin improvement [8] - The marketing strategy has been refined to include grassroots initiatives and influencer partnerships, with a focus on international markets in EMEA and APAC to drive localized growth [9] Financial Performance and Outlook - The company has achieved a 240-basis-point increase in gross margin during the fiscal third quarter, reaching 47.5%, driven by reduced promotional activity and lower costs [10] - Under Armour has updated its fiscal 2025 guidance, expecting a low-single-digit percentage decline in adjusted selling, general and administrative expenses, and raising its adjusted operating income forecast to $185-$195 million [11][12] Valuation Perspective - Under Armour is currently trading at a low price-to-sales (P/S) ratio of 0.49, indicating potential for investors seeking attractive entry points, with a Value Score of A highlighting its value appeal [13] - Despite a recent share decline of 11.3%, Under Armour has outperformed the industry's decline of 19.4% [14]

Core Insights - Under Armour (UAA) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming quarterly reports [1][2] - The company has achieved an average earnings surprise of 112.28% over the past two quarters, indicating robust performance [2] Earnings Performance - In the most recent quarter, Under Armour reported earnings of $0.08 per share, surpassing the expected $0.03 per share, resulting in a surprise of 166.67% [3] - For the previous quarter, the consensus estimate was $0.19 per share, while the actual earnings were $0.30 per share, leading to a surprise of 57.89% [3] Earnings Estimates and Predictions - Recent estimates for Under Armour have been revised upwards, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6][9] - The current Earnings ESP for Under Armour is +20.75%, suggesting analysts are optimistic about the company's earnings prospects [9] Zacks Rank and Success Rate - Under Armour holds a Zacks Rank of 2 (Buy), which, combined with a positive Earnings ESP, suggests a high likelihood of beating earnings estimates [9] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% success rate in exceeding consensus estimates [7]

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 ...

Company Performance - Under Armour, Inc. (UAA) has experienced a significant decline in its stock price, dropping 24% over the past three months, which is worse than the Zacks Textile – Apparel industry's decline of 20.6% and the broader Consumer Discretionary sector's drop of 5.2% [1] - The stock closed at $6.35, which is 46.6% below its 52-week high of $11.89, and is trading below its 50 and 200-day simple moving averages of $7.25 and $7.95, indicating bearish sentiment [4][6] Revenue Challenges - UAA reported a 5.7% year-over-year decline in overall revenues for Q3 of fiscal 2025, totaling $1.4 billion, with North America experiencing a 7.8% revenue drop due to a strategic pullback in e-commerce promotions [5][7] - Wholesale revenues decreased by 1% to $704.8 million, while direct-to-consumer (DTC) sales fell by 9.1% to $672.9 million, with e-commerce revenues dropping 20% [7][8] - International sales also saw a decline of 1.4%, with specific regions like Asia-Pacific and Latin America facing drops of 5.1% and 15.5%, respectively [7] Strategic Initiatives - Under Armour is focusing on transforming its DTC business by emphasizing full-price sales and premium brand positioning, which has led to increased average unit retail prices and order values [10] - The company's loyalty program has grown significantly, with 4 million new members in Q3, bringing the North America membership base to 17 million, enhancing consumer engagement and repurchase rates [11] - A flagship store in Baltimore serves as a testing ground for optimizing consumer experiences, with insights applied across its North America and global retail locations [12] Margin and Financial Outlook - UAA achieved a 240-basis-point increase in gross margin to 47.5% in Q3, attributed to reduced discounting and lower product costs [13] - The company revised its fiscal 2025 guidance, expecting a low-single-digit percentage decline in adjusted selling, general and administrative expenses, and projecting adjusted operating income between $185 million and $195 million [14][15] Valuation Perspective - UAA is currently trading at a low price-to-sales (P/S) ratio of 0.53, significantly below the industry average of 1.76 and the sector average of 1.66, indicating potential for investors [17] - The company's Value Score of A highlights its attractiveness as an investment option despite recent challenges [17][20]

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].