Under Armour, Inc.: Under Armour still struggling during home games; maintain Underweight

Research evidence excerpt

Under Armour, Inc.: Under Armour still struggling during home games; maintain Underweight

• Adj operating income of $140 million to $160 million (includes $70 million benefit

from reversal of tariff expenses from FY26).

1Q27 guidance

Under Armour provided 1Q27 guidance, including:

• revenue -3% to -2%;

o N America -HSD%; EMEA +low-teen %; and APAC flat;

• Gross margin to expand 610 to 630 bps including a tariff benefit of 600bps;

• SG&A to increase HSD% due to increased marketing expenses; and

• Adj operating income of $30 to $40 million.

Financial

Inventory

Inventory declined 3% year-over-year to $915 million at the end of 4Q26.

Share repurchases

The company did not repurchase any shares in 2Q26 after repurchasing $25 million of

shares in 2Q26.

Leverage target

UA maintains a total leverage target of 1.25x or lower.

Capex

UA expects FY27 capex will be in-line with FY26 ($87 million).

Sale of corporate headquarters

UA moved to a new corporate headquarters and is marketing its previous headquarters

building.

Liquidity

UA ended 4Q26 with $915 million of cash and cash equivalents and $200 million

outstanding on its $1.1 billion revolving credit facility. The company’s general operations

require more than $250 million of cash given regional diversification.

Operational updates

Marketing expenses

UA plans to increase its marketing expenses by $30 million in FY27.

Category demand has improved

After several months of weakness in late FY25, category trends have improved.

According to BAC credit and debit card data, DTC athletic and casual footwear spending

has increased an average of 2% over the last three months.

For disclaimers, methodology and limitations on BAC aggregated credit and debit card

data used in this note, see our US Economics team's report: BofA on USA.