Under Armour shares plunge on weak Q4 results and poor guidance
The stock trades more than 25% below its year-to-date high, with analysts maintaining a 'Hold' rating despite the sharp decline in fiscal fourth-quarter performance.
Under Armour shares experienced a significant decline following the release of its fiscal fourth-quarter financial results and weak guidance for fiscal 2027. The company reported a 1% year-on-year revenue decline to $1.17 billion and a per-share loss of $0.03, missing consensus estimates. Full-year fiscal 2027 earnings guidance was set at up to $0.12 per share, significantly below the $0.23 per share expected by analysts.
Gross margins deteriorated by 470 basis points to 42%, driven by a 7.8% increase in the cost of goods sold. This compression reflects severe external pressures, including elevated tariffs, rising product costs, pricing issues, and an unfavourable regional sales mix. The cost of goods sold jump underscores the material headwinds facing the business in 2026.
The stock is trading more than 25% below its year-to-date high, with analysts maintaining a 'Hold' rating and a mean price target of $7.25. Technical indicators show the stock sitting firmly below major moving averages, with a relative strength index in the late 20s indicating intense selling pressure.
Under Armour’s market capitalisation has shrunk to approximately $2.1 billion. The company generates roughly $5 billion in annual revenue, similar to levels seen five years ago, but struggles with a viable path back to profitability. Investors are cautioned against buying the post-earnings dip as the turnaround remains stalled rather than accelerating.
Wall Street consensus rating was 'Hold' with a mean price target of $7.25 prior to the earnings release. Downward revisions may follow after the company’s lackluster fourth-quarter financials and concerning guidance for its fiscal 2027.
