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Tuesday, shares of Under Armour (NYSE:UA), Inc. (NYSE:UAA) saw a low single-digit percentage increase to $6.21 following the company’s fourth-quarter fiscal year 2025 results, which were roughly in line with expectations. The sportswear manufacturer also issued guidance for the first quarter of fiscal year 2026, with revenue projections falling short of Wall Street forecasts but earnings per share (EPS) anticipated to be slightly higher due to improved profitability. According to InvestingPro data, the company maintains a healthy current ratio of 2.01, indicating strong short-term financial stability.
The modest stock rise comes after a period of underperformance, as Under Armour’s stock has declined approximately 37% over the past six months, compared to a roughly 2% decrease in the S&P 500 index. Truist Securities analyst Beth Reed reiterated a Hold rating and a price target of $9.00 on the stock. Reed’s (OTC:REED) assessment suggests that investor sentiment may have been buoyed by the company meeting relatively low expectations.
Reed noted that potential for stock appreciation might be constrained until there is more evidence of fundamental business improvement. Investors are likely to look for signs of recovery or positive shifts in Under Armour’s operational performance to gain confidence in the stock’s growth prospects. The company’s overall financial health score from InvestingPro is rated as "FAIR," with a moderate debt-to-equity ratio of 0.66 and gross profit margins of 47.47%.
Further insights and analysis are expected to be provided following Under Armour’s conference call, which was scheduled for 8:30 AM ET on the same day. Reed indicated that Truist Securities’ financial model and valuation of Under Armour are currently under review, implying that there may be updates to their stance on the company based on new information and discussions from the call.
Under Armour’s recent performance and guidance appear to reflect a company in transition, with efforts to enhance profitability potentially offsetting softer top-line growth. The market’s response to the company’s latest earnings report and future outlook will continue to be closely monitored by investors and analysts alike.
In other recent news, Under Armour, Inc. reported its fiscal fourth quarter 2025 earnings, revealing an earnings per share (EPS) of -$0.08, which met expectations. The company’s revenue decline was slightly better than anticipated, dropping 11.4% compared to the projected 11.5%. Notably, Under Armour’s gross margin improved by 165 basis points year-over-year to 46.7%, surpassing forecasts. However, selling, general, and administrative expenses grew by 7.5%, exceeding predictions. Moody’s Ratings has downgraded Under Armour’s corporate family rating to Ba3 from Ba2, citing expectations of decreased earnings and weakened consumer spending over the next 12-18 months. The outlook remains negative, highlighting challenges in implementing the company’s turnaround strategy. Meanwhile, Citi analysts have maintained a Neutral rating with a $6.00 price target, noting uncertainties in brand direction and potential delays in improving trends in North America. Despite these challenges, Under Armour’s management is focused on preserving cash flow and margins.
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