Abstract
Under Armour will report results on February 06, 2026 Pre-Market; this preview compiles recent fundamentals, consensus forecasts, and institutional commentary to frame revenue, margins, EPS drivers, and what could sway the share price into and after the print.
Market Forecast
Consensus modeling for the current quarter implies revenue of $1.31 billion, a year-over-year decrease of 2.39%, with EBIT estimated at $7.30 million and EPS at $-0.02; the setup points to margin compression against a mixed demand backdrop, while year-over-year EPS and EBIT are projected to contract sharply. The company’s gross profit margin and net profit margin for this quarter have not been guided externally, though the prior report’s mix suggests continued pressure from promotional intensity; adjusted EPS is expected to be $-0.02, down significantly year over year. Under Armour’s core apparel franchise remains the primary revenue engine, with footwear and accessories supporting category breadth and licensing providing an asset-light stream; the near-term outlook hinges on channel health and inventory discipline. The most promising product-led upside remains targeted apparel and footwear franchises that showed relative resilience last quarter, with apparel at $936.48 million and footwear at $263.63 million, though sustained growth is not embedded in near-term consensus.
Last Quarter Review
Under Armour’s last reported quarter delivered revenue of $1.33 billion, a year-over-year decline of 4.69%; gross profit margin was 47.29%, GAAP net profit attributable to shareholders was $-18.81 million with a net profit margin of -1.41%, and adjusted EPS was $0.04, down year over year but above internal and external expectations. A notable highlight was cost control and inventory management that preserved gross margin above 47.00% despite volume pressures and elevated promotions. By business, apparel generated $936.48 million, footwear $263.63 million, accessories $113.08 million, and licensing $28.98 million; apparel remained the largest contributor, while footwear maintained category relevance against broader market softness.
Current Quarter Outlook (with major analytical insights)
Main business: Apparel remains the core cash generator with margin sensitivity
Apparel is the backbone of Under Armour’s P&L, and the prior quarter’s mix share underscores how pivotal category sell-through and promotional cadence are to both revenue and gross profit margin. With consensus pointing to a revenue decline of 2.39% to $1.31 billion and EBIT of $7.30 million, the implied operating margin risk suggests limited pricing power if demand normalization remains incomplete. Marketing allocation around core training, run, and team sports apparel is likely aligned to defending shelf space and maintaining full-price sell-through, but promotional activity in North America could keep gross margin below last year’s level even if product cost tailwinds from freight and materials persist. If the company can sustain a gross profit margin profile near the mid-to-high 40.00% range through tighter inventory buys and SKU rationalization, small upside to EBIT is plausible; however, any incremental clearance to rebalance channels would quickly translate to EPS pressure. Monitoring wholesale reorder trends and digital conversion will be more revealing than shipment timing, as the market is discounting shipment deferrals.
Most promising business: Footwear franchises with product refresh cycles
Footwear at $263.63 million last quarter remains a smaller but strategically important growth vector, where new product cycles and franchise refreshes can drive incremental traffic across channels. A measured launch calendar that prioritizes margin-accretive models in run and training can stabilize category revenue even as broader market demand cools. The near-term debate centers on whether new introductions can offset cautious ordering by wholesalers; if turns improve and full-price mix expands, category gross margins could outpace apparel sequentially. The company’s ability to seed technical innovation into hero styles without overexpanding the SKU count will influence both sell-through and inventory efficiency. If product resonance holds, footwear could provide relative outperformance versus consensus embedded declines, adding leverage to EBIT despite the modest base.
Key stock-price swing factor this quarter: Margin cadence versus promotional intensity
With last quarter’s gross profit margin at 47.29% and net profit margin at -1.41%, investors will focus on how pricing, mix, and inventory actions balance against promotions in North America. A modest gross margin hold aided by lower freight and better product costing could de-risk the quarter even if revenue is slightly below plan; conversely, a heavier-than-expected promotional environment would likely drive EPS below the $-0.02 estimate. The revenue algorithm still depends on healthy wholesale inventory and steady direct-to-consumer traffic; any signal of wholesale order pushouts or elevated clearance could weaken sentiment beyond the quarter. Watch commentary on inventory growth relative to sales, order book visibility into the next season, and the cadence of marketing investments as read-throughs for second-half EBIT.
Analyst Opinions
Across recent institutional commentary gathered over the past months, the prevailing tone is cautiously bearish, with a majority expecting softer top-line and pressured profitability into the print given wholesale conservatism and a promotional retail backdrop. Several analysts have highlighted that consensus embeds a modest revenue decline and a sharp step-down in EBIT, reflecting limited near-term catalysts; the bull case requires firmer demand in North America and disciplined promotions, which remains unproven. Well-followed sell-side voices point to risk that EPS could undershoot if clearance activity intensifies, though they acknowledge cost and freight tailwinds that partially offset. The majority view emphasizes execution on inventory normalization and product newness as necessary but not yet sufficient to re-rate the multiple, keeping expectations tempered for the February 06, 2026 update.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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