Under Armour: Positioned For A Turnaround
I downgraded Under Armour to a sell as revenue continues to decline, and key initiatives show little progress, especially in North America. DTC and footwear segments remain weak, with full-price repositioning and portfolio management strategies failing to revive demand. Tariff risks add significant uncertainty, threatening margins and complicating any turnaround amid already soft consumer demand.
Socks and t-shirt company Bombas has appointed longtime retail executive Jason LaRose to be its next CEO as it looks to scale beyond DTC roots.
Sports apparel giant expects a slight first-quarter profit, while Wall Street was expecting a breakeven quarter
Under Armour's turnaround hinges on improved margins, restructuring, and new product lines like the Echo shoe, despite ongoing revenue declines and tariff challenges. Kevin Plank's return as CEO aims to streamline operations, cut costs, and focus on premium products, showing mixed results so far. The NFL partnership and positive reviews for new footwear signal potential market share gains, tough competition and supply chain risks remain.
Under Armour founder CEO Kevin Plank has been back in place as CEO for ~9 months, intent on enhancing the brand's image beyond low-cost wholesaling. The company's recent earnings report shows progress, with raised guidance and strong gross margins, but challenges remain in inventory and shifting consumer perception. Concerns over tariffs and manufacturing footprint in Asia add uncertainty to the story.
Under Armour on Thursday raised its forecast for annual profit, as the athletic wear maker's efforts to dial down on discounts coupled with easing product and freight costs bolstered its margins.
Women's 3x3 basketball league Unrivaled has signed a deal with Baltimore-based Under Armour. The retailer will provide apparel for both on and off the court.
Under Armour, Inc.'s Q2 2025 results beat expectations, but revenue and profit remain down YoY, showing widespread challenges across categories, regions, and channels. Cost-cutting measures improved margins and operating income, but the brand's turnaround lacks substantial evidence, with sales and brand heat still struggling. The stock price already reflects significant operational improvements, leaving little upside potential and considerable downside risk if results don't materialize.
Under Armour Inc (NYSE:UA) shares leapt 30% to an 18-month high on the back of results coming in better than expected under new CEO Kevin Plank, despite falling sales. The sportswear manufacturer upped its guidance for the year to next March, now expecting smaller losses than before.
Shares of Under Armour Inc. were having their best day ever on Thursday, after the maker of athletic gear said its upbeat quarterly results and full-year outlook showed that the company's “affinity for the underdog” and plan to provide premium products was working.
Under CEO Kevin Plank, Under Armour has been repositioning itself as a premium athletic wear company.