Under Armour Posts Strong Q3: Reinstated FY26 Guidance Suggest 'Ongoing Challenges,' Analysts Say

Core Insights - Under Armour Inc reported fiscal second-quarter results that exceeded expectations, with adjusted earnings of four cents per share, surpassing the Street's forecast of two cents per share [2] - Despite a contraction in gross margins by 250 basis points to 47.3%, this figure was better than the consensus estimate of 46.3% [2] - The company anticipates a revenue decline of 4%-5% in fiscal 2026, particularly in North America and APAC, with a high single-digit decline expected in those regions [3] Financial Performance - The fiscal second-quarter results were slightly above expectations, attributed to a timing shift of 100 basis points of sales from the third quarter and benefits from foreign exchange and pricing actions [4] - The guidance for the fiscal third quarter fell short of expectations due to soft demand and the full quarter impact of tariffs, indicating ongoing challenges [5] Analyst Ratings - JPMorgan analyst Matthew Boss reiterated an Underweight rating with a price target of $5, while Telsey Advisory Group analyst Cristina Fernández maintained a Market Perform rating with the same price target [6]