Under Armour's Q1 Earnings Show Mixed Results and Adjusted Forecasts

Under Armour Reports First Quarter Results

Under Armour, Inc. (NYSE: UAA) has recently disclosed its first-quarter fiscal results for the year, showcasing a performance that has stirred conversations among analysts and investors alike.

Performance Overview

The company reported a revenue that declined by 4% year-over-year, landing at $1.13 billion. This figure did not meet the anticipated consensus forecast of $1.154 billion. Furthermore, Under Armour disclosed a GAAP net loss of $3 million, translating to a loss of 1 cent per diluted share. Adjusted net income showed a slight improvement, rising to $9 million or 2 cents per share, which is a growth from 1 cent reported in the same quarter last year.

CEO's Comments on Current Market Conditions

Kevin Plank, the President and CEO of Under Armour, expressed optimism by stating, "Despite ongoing uncertainty, our brand is gaining strength, and we are executing our strategic plan with clarity and confidence." This statement reflects a positive internal assessment amidst challenging market conditions.

Looking Forward: Second Quarter Projections

For the upcoming second quarter of fiscal 2026, Under Armour projects revenue to be in the range of $1.055 billion to $1.066 billion, significantly lower than the analyst estimate of $1.374 billion. Additionally, adjusted diluted earnings per share are expected to fall between 1 and 2 cents, compared to the 28 cents consensus forecast.

Geographical Revenue Expectations

The company’s outlook indicates a complex landscape for operational performance, expecting a low double-digit revenue decline in North America, while EMEA regions are anticipated to experience high single-digit growth. Conversely, a low-teens decline is expected in the Asia-Pacific market.

Investor Reaction and Stock Movement

Following the earnings release, Under Armour's stock saw a downward trend, with shares declining by 4.1%, bringing the trading price to around $5.22. This response from investors highlights the market's reaction to the earnings performance versus expectations.

Analysts Respond to Under Armour's Earnings

In the wake of the earnings announcement, several analysts revised their price targets for Under Armour’s shares:

• Telsey Advisory Group analyst Cristina Fernandez maintained a Market Perform rating but reduced the price target from $7 to $5.
• B of A Securities analyst Lorraine Hutchinson also maintained a Neutral rating with a revised target dropping from $8 to $6.5.
• Baird analyst Jonathan Komp kept the Neutral stance and lowered the price target from $7 to $6.
• Citigroup analyst Paul Lejuez similarly cut the target from $6 to $5.5 while maintaining a Neutral outlook.
• UBS analyst Jay Sole contrasted this by maintaining a Buy rating but adjusted the target down from $8 to $7.5.

Final Thoughts for Potential Investors

Considering an investment in UAA stock? Analysts present a mixed outlook, with some expressing caution given the revised growth expectations and overall market conditions.

Frequently Asked Questions

What did Under Armour report for first quarter earnings?

Under Armour reported revenue of $1.13 billion and a net loss of $3 million for the first quarter of fiscal 2026.

What are the projections for Under Armour's second quarter?

The company forecasts revenue between $1.055 billion and $1.066 billion for the second quarter, significantly lower than analyst estimates.

How did analysts react to the earnings report?

Analysts adjusted their price targets for Under Armour following the earnings report, with several lowering their expectations for the stock.

What did the CEO say about Under Armour's strategy?

Kevin Plank emphasized the brand's growing strength and the clarity of the strategic plan despite market uncertainties.

What impact did the earnings have on Under Armour's stock?

Under Armour's shares fell by 4.1% following the earnings announcement, reflecting investor concerns about the financial performance.

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