Under Armour Inc "Disappointing 4Q Report, but Not Thesis Changing;..."

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Under Armour Inc "Disappointing 4Q Report, but Not Thesis Changing;..."

Global Research

13 May 2026ab

Under Armour Inc Equities

AmericasDisappointing 4Q Report, but Not Thesis

Changing; Reiterate Buy Retailers, Apparel

12-month rating Buy *

12m price target US$10.00We expect UAA's EPS to rebound from trough levels:

Prior : US$11.00

UAA’s 4Q26 report, which included below-consensus FY27 revenue and EPS guides,

suggests the company’s ongoing strategic reset will potentially take a bit longer to Price (13 May 2026) US$5.11

materialize into financial results than we previously anticipated. Yet, we maintain our RIC: UAA.N BBG: UAA US

conviction in mgmt's ability to steer UAA’s turnaround. Our view is the company is

taking several deliberate actions which are weighing on near-term financial Trading data and key metrics

performance, but we believe are ultimately necessary for the business to achieve 52-wk range US$8.14-4.17

durable, more profitable growth over the long-term. Furthermore, with UAA’s stock Market cap. US$2.18b

falling 17% over the event, we believe much of the negative news is already priced in, Shares o/s 426m (COM)

and we believe the upside/downside skew leans to the upside from here. This is why we Free float 84%

maintain our Buy rating. We forecast a 54% 5-yr. EPS CAGR off of a low base. Avg. daily volume ('000) 1,895

Avg. daily value (m) US$12.1

Five stats which suggest UAA’s underlying turnaround is still progressing: Common s/h equity (03/27E) US$1.41b

1) Excluding potential benefits tied to tariff refunds, UAA expects underlying gross P/BV (03/27E) 1.5x

margins to expand 70-120 bps y/y in FY27 driven by improved assortment pricing, Net debt to EBITDA (03/27E) 3.3x

reduced promotions, and a more favorable channel mix. 2) UAA has reduced its SKUs by