Overview

* Under Armour ( UAA ) fiscal Q2 revenue beats analyst expectations despite a 5% decline

* Adjusted EPS for fiscal Q2 beats analyst expectations

* Company repurchased $25 mln of Class C common stock, retiring 5.2 mln shares

Outlook

* Under Armour ( UAA ) expects fiscal 2026 revenue to decrease 4% to 5%

* Gross margin expected to decline 190 to 210 basis points in fiscal 2026

* SG&A expenses projected to decrease by mid-teens percentage rate in fiscal 2026

Result Drivers

* NORTH AMERICAN DECLINE - North American revenue fell 8% due to weaker demand

* GROSS MARGIN PRESSURE - Gross margin declined by 250 basis points due to supply chain issues and increased tariffs

* SG&A EXPENSES INCREASE - SG&A expenses rose 12% due to higher marketing costs and absence of insurance recovery benefit

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.33 $1.31

Revenue bln bln (19

Analysts

)

Q2 Beat $0.04 $0.02

Adjusted (20

EPS Analysts

)

Q2 EPS -$0.04

Q2 $15 mln

Adjusted

Net

Income

Q2 Net -$19 mln

Income

Q2 Gross 47.30%

Margin

Q2 $53 mln

Adjusted

Operatin

g income

Q2 EBIT $17 mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 21 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories peer group is "buy."

* Wall Street's median 12-month price target for Under Armour Inc ( UAA ) is $5.50, about 16.2% above its November 5 closing price of $4.61

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)