Under Armour (UAA) Stock Forecast & Price Target

Under Armour is experiencing a positive trajectory in its financial performance, as evidenced by a notable 12% growth in licensing, driven by success in both North America and international markets, alongside a year-over-year increase in accessory sales by 8%. The company's gross margin improvement of approximately 70 basis points to 48.2% further underscores its operational efficiency and profitability. Additionally, the successful "We Are Football" campaign has markedly improved brand awareness among the 18-34 demographic, indicating strong potential for customer engagement and future sales growth.

Under Armour is facing substantial financial challenges, with adjusted earnings per share (EPS) for FY26 projected to decline by over 50%, primarily driven by increased debt and a significantly higher tax rate compared to FY25. The company's footwear sales have decreased by 14% with projections indicating ongoing declines across all categories, attributing this setback to a difficult demand environment and necessary adjustments in product assortment. Additionally, Under Armour's 3QF26 guidance has fallen short of expectations due to sluggish demand and the ongoing impact of tariffs, leading to notable contractions in operating margins across various segments.