Under Armour (UAA) Stock Forecast & Price Target

Under Armour is experiencing positive financial momentum, highlighted by a 12% increase in licensing revenue across both North America and international markets, demonstrating strong brand engagement. The company's gross margin has improved by approximately 70 basis points to 48.2%, indicating enhanced operational efficiency and profitability. Additionally, the successful "We Are Football" marketing campaign has significantly boosted brand awareness among the target demographic, combined with an 8% growth in accessories driven by the training and sportswear segments, reflecting a favorable consumer response to its product offerings.

Under Armour's adjusted EPS for FY26 is projected to decline by over 50%, primarily due to increased interest expenses from higher debt levels and a significant rise in the tax rate stemming from an unfavorable regional sales mix. The company's footwear sales have seen sharp declines, down 14% as a result of a challenging demand environment and ongoing adjustments to its product portfolio, indicating persistent struggles in maintaining market traction. Additionally, the guidance for 3QF26 falls significantly below expectations, reflecting weak demand and the full impact of tariffs, which has led to substantial operating margin contractions across various segments.