Under Armour (UAA) Stock Forecast & Price Target

Under Armour’s financial outlook is bolstered by a significant gross margin expansion of 240 basis points year-over-year, driven by lower promotional activities, decreased supply chain costs, and favorable foreign exchange rates, which is expected to enhance earnings per share (EPS). The company is proactively reinvesting its revenue and margin gains into brand-building initiatives and operational improvements, contributing to an adjusted forecast of $0.30 for FY25 and $0.45 for FY26. Additionally, Under Armour anticipates a combined EBIT margin expansion of 200-250 basis points over the next two fiscal years, supporting potential revenue growth in North America as it rebounds in FY26 and FY27.

The financial outlook for Under Armour presents significant concerns, with anticipated revenue declines of 9.9% for FY25, reflecting a substantial contraction particularly in North America, where a 13% drop is projected. The company's struggle with direct-to-consumer (DTC) sales, exacerbated by lower e-commerce performance and heightened promotional strategies over the years, contributes to this negative trend. Additionally, despite some improvements in gross margins due to reduced promotions, the overall forecast suggests ongoing declines in revenues and flat growth into FY27, indicating continued challenges for the brand's market position.