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Under Armour Inc - Class C (UA)
NYSE:UA
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Under Armour
(NYSE:UA)52Neutral
Under Armour (UA) vs. S&P 500 (SPY)
Market Cap
$2.77B
Dividend YieldN/A
Average Volume (3M)3.84M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-7.47%
EPS Growth-131.70%
CountryUS
Employees15,000
SectorConsumer Cyclical
Sector Strength53
IndustryApparel & Luxury
Share Statistics
EPS (TTM)-0.31
Shares Outstanding206,585,020
10 Day Avg. Volume2,925,953
30 Day Avg. Volume3,835,776
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.50
Price to Cash Flow (P/CF)2.20
P/FCF Ratio2.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Under Armour Business Overview & Revenue Model
Company DescriptionUnder Armour, Inc. engages in the development, marketing, and distribution of branded performance apparel, footwear, and accessories for men, women, and youth. It operates through the following segments: North America, EMEA, Asia-Pacific, Latin America, and Connected Fitness. The North America segment comprises of U.S. and Canada. The Connected Fitness segment offers digital fitness subscriptions, along with digital advertising through its MapMyFitness, MyFitnessPal, and Endomondo. applications. The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, MD.
How the Company Makes MoneyUnder Armour generates revenue primarily through the sale of its athletic apparel, footwear, and accessories. The company's revenue streams can be categorized into direct-to-consumer sales via its retail stores and e-commerce platforms, and wholesale distribution to retailers worldwide. Under Armour also benefits from strategic partnerships and sponsorship deals with athletes and sports teams, which enhance brand visibility and drive sales. Additionally, the company invests in marketing and product innovation to maintain competitiveness in the athletic apparel industry, contributing to its overall earnings.
Under Armour Financial Statement Overview
Summary
Under Armour faces challenges with declining revenue, profitability, and cash flow in the latest period. Despite these issues, the company maintains a stable balance sheet with manageable leverage. Past performance shows the potential for improvement if operational efficiencies and revenue growth can be achieved.Income Statement
Under Armour's TTM (Trailing-Twelve-Months) revenue has decreased significantly compared to the previous year. The company currently has a negative net profit margin and EBIT margin, indicating operational challenges. However, its gross profit margin remains positive, demonstrating some ability to manage cost of goods sold. In the past, the company showed positive EBIT and net income, reflecting potential for recovery if cost controls improve.65
Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio has slightly declined, indicating increased liabilities relative to assets. Historically, Under Armour has maintained a reasonable return on equity, although recent losses present a challenge to equity returns.70
Positive
Cash Flow
The TTM (Trailing-Twelve-Months) cash flow reveals negative free cash flow, reflecting cash management issues. Operating cash flow is low compared to net income, pointing to potential inefficiencies. Historically, the company has generated positive operating cash flow, suggesting the ability to recover cash flow performance.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.32B | 5.70B | 5.90B | 5.68B | 4.47B | 5.27B | Gross Profit |
| 2.52B | 2.63B | 2.65B | 2.86B | 2.16B | 2.47B | EBIT |
| -119.60M | 229.75M | 283.81M | 486.29M | -613.44M | 236.77M | EBITDA |
| 15.34M | 372.34M | 421.43M | 708.47M | 321.30M | 417.51M | Net Income Common Stockholders |
| -134.07M | 232.04M | 386.77M | 360.06M | -549.18M | 92.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 726.88M | 858.69M | 711.91M | 1.67B | 1.52B | 788.07M | Total Assets |
| 4.63B | 4.76B | 4.86B | 4.99B | 5.03B | 4.84B | Total Debt |
| 1.31B | 1.44B | 1.52B | 1.50B | 2.01B | 1.30B | Net Debt |
| 578.26M | 584.10M | 809.27M | -165.15M | 488.17M | 511.15M | Total Liabilities |
| 2.65B | 2.61B | 2.86B | 2.90B | 3.35B | 2.69B | Stockholders Equity |
| 1.98B | 2.15B | 2.00B | 2.09B | 1.68B | 2.15B |
| Cash Flow | Free Cash Flow | ||||
| -153.66M | 203.64M | -197.71M | 595.07M | 120.57M | 363.23M | Operating Cash Flow |
| 3.73M | 353.97M | -9.91M | 664.83M | 212.86M | 509.03M | Investing Cash Flow |
| -116.73M | -105.33M | -152.80M | -68.35M | 66.34M | -147.11M | Financing Cash Flow |
| -158.16M | -78.69M | -126.38M | -418.74M | 436.85M | -137.07M |
Under Armour Technical Analysis
Negative
6.43
Price Trends
7.14
Negative
7.81
Negative
7.45
Negative
Market Momentum
-0.27
Positive
37.97
Neutral
27.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Negative. The current price of 6.43 is below the 20-day moving average (MA) of 6.62, below the 50-day MA of 7.14, and below the 200-day MA of 7.45, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UA.
Under Armour Risk Analysis
Under Armour disclosed 36 risk factors in its most recent earnings report. Under Armour reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Under Armour Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $43.82B | 25.25 | 46.21% | ― | 10.84% | 76.07% | |
74 Outperform | $114.37B | 23.89 | 34.67% | 1.95% | -4.77% | -5.99% | |
73 Outperform | $8.63B | 13.91 | 13.52% | ― | 12.11% | 19.16% | |
71 Outperform | $4.61B | 21.81 | 12.01% | 1.44% | -3.35% | -6.09% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $8.78B | ― | -27.21% | 1.60% | -8.42% | 57.91% | |
52 Neutral | $2.77B | ― | -6.76% | ― | -7.47% | -131.70% |
* Consumer Cyclical Sector Average
Performance Comparison
UA
Under Armour
6.43
-1.79
-21.78%
COLM
Columbia Sportswear
84.36
5.12
6.46%
LULU
Lululemon Athletica
349.53
-99.01
-22.07%
NKE
Nike
77.81
-18.03
-18.81%
SKX
Skechers USA
59.34
-1.47
-2.42%
VFC
VF
23.45
7.97
51.49%
Under Armour Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -12.87% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a cautious yet optimistic outlook for Under Armour. While there were notable achievements in gross margin improvements and strategic marketing initiatives, challenges remain in key regions such as North America and APAC, as well as ongoing restructuring costs.Highlights
Exceeded Expectations in Q3
Revenue decline of 6% to $1.4 billion was better than the outlook of a 10% decline. Gross margin increased by 240 basis points to 47.5%.
Improved Full-Year Outlook
Raised full-year revenue decline expectation to approximately 10% from low-double-digit contraction. Adjusted operating income outlook increased by $15 million.
Strong Performance in EMEA
EMEA revenue increased by 5%, with growth in DTC and full-priced wholesale business.
Innovation in Footwear
Launch of De'Aaron Fox's signature shoe, the Fox 1, and upcoming launch of SlipSpeed Echo Footwear.
Marketing and Brand Strategy
Refined marketing strategies focusing on storytelling and brand connection, with a significant multi-year brand activation initiative planned.
Lowlights
North America Revenue Decline
North America revenue decreased by 8%, driven by lower eCommerce sales due to reduced promotions.
APAC Region Underperformance
APAC revenue fell by 5%, with demand-related challenges from a competitive market and high inventory levels.
Licensing and Latin America Decline
Licensing revenue decreased by 18%, and Latin America revenue declined by 16%.
Ongoing Restructuring Costs
Recorded $14 million in restructuring charges, with total expected restructuring costs between $140 million to $160 million.
Company Guidance
During Under Armour's third quarter fiscal 2025 earnings call, the company reported a 6% year-over-year revenue decline to $1.4 billion, which was better than the anticipated 10% decline. By region, North America saw an 8% decline, primarily due to a downturn in the DTC business, while EMEA revenue rose by 5%. APAC revenue dropped by 5%, and Latin America saw a 16% decrease. Gross margin improved by 240 basis points to 47.5%, driven by supply chain efficiencies and reduced discounting, while SG&A expenses increased by 6% to $638 million. The company raised its full-year outlook, expecting revenue to decline by approximately 10% and adjusted operating income to reach $185-$195 million. Adjusted diluted earnings per share are projected at $0.28-$0.30. Under Armour highlighted strategic initiatives, including a shift to a consumer-focused category management model and plans for enhanced marketing efforts.Under Armour Corporate Events
Business Operations and Strategy
Under Armour Unveils Strategic Plan for Growth
Positive
Dec 12, 2024
Under Armour held an investor meeting to outline its product, brand, and commercial strategies aimed at enhancing shareholder value and reiterated its fiscal 2025 outlook. The company’s strategy focuses on product innovation, consumer-led brand storytelling, market-specific commercial strategies, and leveraging its leadership team to foster sustainable growth, strengthening its position in the competitive sports apparel industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.