Under Armour (UAA) Stock Forecast & Price Target

Under Armour has demonstrated an upward trajectory in awareness among its target demographic, particularly noted with the success of its "We Are Football" campaign, which saw awareness scores among individuals aged 18-34 increase by approximately 20 points to the 80 range in six months. The company's adjusted operating income guidance has also improved to $110 million, reflecting positive developments in their cost management and SKU rationalization efforts, despite a modest contraction in operating margins. Furthermore, the North America segment is poised for stabilization in FY27, with anticipated growth resuming in FY28 and beyond, strengthening the overall outlook for the company's financial performance.

Under Armour's financial outlook has worsened, as the company's 3QF26 guidance fell significantly below expectations, primarily due to weak consumer demand and the effects of tariffs, leading to operating margin contraction of approximately 385 basis points year-over-year. Footwear sales experienced a substantial decline of 16% across all categories, reflecting both a challenging market environment and the need for product portfolio adjustments. Furthermore, the revised FY26 outlook indicates an anticipated decline in EPS for the fourth quarter, with projected operating margins decreasing to 1.9%, compounded by a decline in North American sales driven by reduced wholesale orders.