Under Armour’s most recent quarter reflected continued top-line pressure, with revenue falling year over year despite exceeding Wall Street’s expectations. Management highlighted that the ongoing decline was primarily driven by softer consumer traffic in North America and heightened promotional activity across key markets. CEO Kevin Plank pointed to the company’s efforts in simplifying assortments, reducing SKUs, and focusing on core franchises like HeatGear and Vanish as bright spots within a challenging environment. Plank noted, “We are concentrating resources where our performance credibility gives us the strongest opportunity to win.”
Is now the time to buy UAA? Find out in our full research report (it’s free for active Edge members).
Under Armour (UAA) Q3 CY2026 highlights:
- Revenue $1.24 billion vs S&P analyst consensus of $1.23 billion (6.9% year-on-year decline, 0.9% beat)
- Adjusted EPS $0 vs S&P analyst consensus of -$0.01 (in line)
- Adjusted operating income $24.94 million vs analyst estimates of $13.83 million (2% margin, 80.4% beat)
- Adjusted EPS guidance Management reiterated its full-year adjusted EPS guidance of $0.10 at the midpoint
- Operating margin 1.2%, in line with the same quarter last year
- Locations 438 at quarter end, down from 447 in the same quarter last year
- Constant currency revenue fell 7.3% year on year (-6% in the same quarter last year)
- Market capitalization $2.23 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Under Armour’s Q3 earnings call
- Simeon Siegel (Guggenheim): asked CEO Kevin Plank about the disconnect between product innovation and consumer willingness to pay full price. Plank emphasized the need for clearer storytelling and marketing to bridge this gap, and highlighted efforts to simplify assortments and focus on proven franchises.
- Jay Sole (UBS): inquired about marketing metrics and the effectiveness of recent campaigns. Plank detailed improvements in brand consideration and perception but acknowledged that traffic and conversion remain challenges, with plans to further refine product storytelling and reduce reliance on performance marketing.
- Sam Poser (Williams Trading): questioned how Under Armour will manage inventory risk with new product launches. CFO Reza Taleghani described the company’s approach of testing demand, adjusting future buys, and leveraging AI to improve forecast accuracy, while Plank emphasized a “test and learn” philosophy.
- Bob Drbul (BTIG): requested more detail on the asset-light strategy and its broader implications. Plank explained the intent to focus company resources on brand-building and marketing, while partners handle more of the manufacturing and retail functions.
- Brooke Roach (Goldman Sachs): asked about changes in North America store formats and the impact of adding full-price product to Factory House stores. Plank discussed early efforts to premiumize the brand and drive higher average selling prices, noting the experiment’s potential to improve brand perception and profitability.
Catalysts in upcoming quarters
Looking forward, our analysts will focus on (1) progress in reducing inventory levels and managing promotional intensity, (2) the impact of monthly new product and franchise launches on full-price sales and consumer engagement, and (3) the effectiveness of the asset-light licensing model, especially in youth apparel. Additionally, we will track the company’s ability to sustain expense discipline and improve gross margins despite ongoing macroeconomic headwinds.
Under Armour currently trades at $5.28, down from $5.55 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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