Abstract
Under Armour Class A will report quarterly results on August 7, 2026, Pre-Market, with investors watching revenue trajectory, margin resilience, and the pace of earnings normalization after the prior quarter’s mixed performance.
Market Forecast
Based on the latest compiled forecasts, Under Armour Class A’s current quarter revenue is expected to be about 1.11 billion US dollars, representing a 2.05% year-over-year decline, while adjusted EPS is projected around 0.02, implying a 39.17% year-over-year contraction; forecasts for net profit and gross margin were not indicated. The company’s main business remains apparel, and expectations center on promotional intensity and channel mix management to keep gross margin within a defensible range versus the last quarter’s profile. Footwear appears positioned as the most promising segment by product-cycle optionality, with last quarter revenue of 281.77 million US dollars; year-over-year change by category was not disclosed.
Last Quarter Review
In the prior quarter, Under Armour Class A posted revenue of 1.17 billion US dollars (down 0.80% year-over-year), a gross profit margin of 43.14%, a GAAP net loss attributable to shareholders of 43.39 million US dollars with a net profit margin of -3.70%, and adjusted EPS of -0.03 (up 62.50% year-over-year despite remaining negative). A notable highlight was that revenue modestly exceeded expectations while margins held in the low-40s, suggesting relative discipline on promotions and product mix despite a pressured demand backdrop. By business line, apparel contributed 777.96 million US dollars, footwear 281.77 million US dollars, accessories 93.65 million US dollars, and licensing 26.85 million US dollars; year-over-year changes by segment were not specified.
Current Quarter Outlook
Apparel: Core driver to watch
Apparel remains the company’s revenue anchor and the segment investors will scrutinize for signs of stabilization amid a forecast top-line decline of 2.05% year-over-year this quarter. The prior quarter’s gross margin at 43.14% indicates that product mix and pricing discipline supported profitability, but achieving a similar margin construct now hinges on maintaining a measured promotional cadence as back-to-school and early fall assortments enter the channel. Channel mix will likely matter: a healthier balance between wholesale shipments and direct-to-consumer sell-through could mitigate markdown risk and help protect contribution profits. With consensus calling for adjusted EPS around 0.02, the apparel margin structure must do more of the heavy lifting given limited top-line momentum. Operationally, the focus will be whether new-season technical tops and bottoms can hold price relative to comparable offerings and whether replenishment orders from wholesale partners track ahead of internal planning, both of which can influence in-quarter gross-to-net dynamics and inventory turns.
Footwear: Most promising near-term upside
Footwear, at 281.77 million US dollars last quarter, presents the cleanest path to upside if product introductions and color refreshes convert to demand without requiring heavy promotions. The forecast profile for this quarter shows EBIT estimated at 36.14 million US dollars, up 77.20% year-over-year on the estimates basis, suggesting that even modest revenue outperformance in higher-margin footwear franchises could flow meaningfully to operating income. Within the quarter, investors will watch whether replenishment velocity in running, training, and court categories improves and if sell-through can outpace sell-in to avoid inventory build. Absent explicit segment guidance, the key read-through will come from overall gross margin and any commentary on ASPs and return rates—healthy metrics there often correlate with better footwear mix. If footwear’s contribution grows, it could offset apparel softness, lift gross margin above the low-40s baseline, and lend support to the quarter’s EPS target despite a down revenue print.
What will move the stock this quarter
The stock’s reaction is likely to be driven by the balance of in-quarter profitability versus the magnitude and tone of management’s forward commentary. Forecasts imply revenue down 2.05% year-over-year and EPS down 39.17% year-over-year, so investors will prioritize whether gross margin trends outperform the implied trajectory and whether SG&A is kept tight enough to deliver the 36.14 million US dollars EBIT estimate. Inventory and channel health will be another decisive swing factor; clean channel inventories and measured order books reduce markdown exposure and support a better gross-to-net outcome. Additionally, sentiment entering the print has been sensitive to cautious annual outlook signals earlier this year, including expectations for a softer top line and compressed earnings range, which raised the bar for execution. If management signals improving order trends into late summer and early fall, alongside stable logistics and input costs, the stock could respond favorably even if revenue is slightly below plan; conversely, any incremental pressure in North America or a more promotional tone across categories could skew investor reaction negatively.
Analyst Opinions
Bearish views currently dominate relative to bullish calls. One major sell-side institution maintained a negative stance earlier this cycle, with a prominent analyst at a leading global bank reiterating a Sell rating alongside a 5.00 US dollars price target, citing concerns about softer demand and a conservative earnings framework for the year. That perspective aligns with the market’s expectation for a 2.05% year-over-year revenue decline this quarter and a 39.17% contraction in adjusted EPS, signaling limited near-term catalysts without margin outperformance or an acceleration in sell-through. The bearish case emphasizes that visibility on a sustained top-line reacceleration remains constrained by ongoing promotional intensity and a cautious order environment, making operating leverage more difficult to realize in the near term. Under this view, the burden shifts to cost control, mix, and selective pricing power to deliver the forecasted 36.14 million US dollars in EBIT; any shortfall in these levers could translate into EPS risk despite disciplined expense management. As a result, bearish analysts frame this print as a validation point on gross margin trajectory and inventory discipline rather than a revenue-reacceleration story, with the path to multiple expansion likely requiring clearer signs of improving quarterly cadence in subsequent periods.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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