Out Fox The $treet

Update - June 20, 2025 UA appears set for a run with no real news today. The stock broke the downtrend today.  Original article posted on May 21  Under Armour's turnaround is challenged by tariffs and weak sales, but founding CEO Kevin Plank's return brings renewed focus on innovation and premium products. Product resets and SKU cuts have hurt sales, but new launches like the Uncrushable Hat and No Weigh Backpack show promise for higher-margin growth. The stock remains cheap at only 0.6x forward EV/S targets, while industry peers trade at least 3x the multiple of sales. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » The  Under Armour, Inc.  ( NYSE: UA ) ( NYSE: UAA ) turnaround continues to struggle with the dynamic retail market due to tariffs. The athletic apparel company has made a lot of progress on innovation since founder Kevin Plank  returned to the C...

  Under Armour's stock initially rose with founder Kevin Plank's return and FQ1 results but fell due to higher FY25 restructuring charges misunderstood by the market. The restructuring charges increased to $140-$160 million, causing a slight rise in operating loss, yet adjusted EPS remains on target. The stock's valuation at only 0.6x EV/S targets suggests substantial upside compared to peers like Lululemon and Nike, on top of the potential for the brand's resurgence. Under Armour, Inc.  ( NYSE: UA )( NYSE: UAA ) seems to fall sometimes just for releasing news. The stock jumped following FQ1 results and signs that Stephen Curry is working with the athletic apparel retailer to  expand the Curry Brand, yet a simple update crushed the stock. My  investment thesis  remains ultra-Bullish on the stock, with the return of founder Kevin Plank set to help return the company to glory. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the di...

  Under Armour reported solid FQ4'23 numbers despite ongoing margin pressures. The athletic apparel company faces a tough start to FY24 due to elevated inventory levels leading to a continuation of the promotional activity. The stock is crazy cheap at 0.5x FY24 sales targets while the company produces better metrics than peers trading at a far higher multiple. The current stock market is very bipolar where stocks trade more based on history than actual comparative results.  Under Armour  ( NYSE: UA ,  NYSE: UAA ) is a prime example of a stock struggling to impress the market  with similar or not better results than market darling  Nike  ( NKE ). My  investment thesis  remains ultra Bullish on the athletic apparel stock trading at a massive discount to peers. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

  Under Armour, Inc. has traded down since reporting a solid FQ3'23 earnings report. The athletic apparel company still forecasts producing solid earnings despite a 425 basis point hit to gross margins. Under Armour stock is cheap based on earnings rebounding in FY24 as the promotional environment ends. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Some stocks just never seem to get a break, and  Under Armour, Inc.  ( NYSE: UA ,  NYSE: UAA ) falls into this category now. The athletic apparel company handled the inventory issue as best as possible throughout the  covid supply chain issues, yet the stock never got a benefit during the period. My  investment thesis  remains ultra-Bullish on the stock following the dip back below $10. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details....

Update - Feb. 8 Shorts are going to hate not listening and buying the dip on Under Armour. The stock should quickly close the gap to $13 on $UA.  -Q3 Non-GAAP EPS of $0.16 beats by $0.07. -Revenue of $1.58B (+3.3% Y/Y) beats by $30M. -Adjusted diluted earnings per share is now expected to be $0.52 to $0.56 versus the previously expected range of $0.44 to $0.48 vs. $0.46 consensus Update - Dec. 21 Under Armour up 4% on the better than expected report from Nike . Also, Nike has improved the inventory position since 90 days ago which should reduce the promotional environment hitting UA this year. -Nike press release (NYSE:NKE): Q2 GAAP EPS of $0.85 beats by $0.21. Revenue of $13.32B (+17.3% Y/Y) beats by $740M. -Gross margin decreased 300 basis points to 42.9 percent. -Inventories for NIKE, Inc. were $9.3 billion, up 43 percent compared to the prior year period, driven by an increase in units from lapping prior year supply chain disruption, as well as higher input costs. -We bel...

  Under Armour reported another strong quarter with numbers smashing analyst estimates. The athletic apparel retailer guided to high supply chain pressures in the current quarter, but the situation is just a speed bump on long-term profit growth. The stock is ridiculously priced at 1x EV/S targets for 2022. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Under Armour  ( UA ,  UAA ) remains on track for a strong turnaround, but the market reacted negative last week to some transitional supply chain issues. The athletic apparel maker has successfully transitioned back to a performance brand after years sidetracked on junk apparel sold to off-price channels. My  investment thesis  remains ultra Bullish on the stock following the irrational dip since the mid-November highs above $27. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for mo...

Under Armour rallied following a big Q2 beat placing a lot of key metrics above 2019 levels. The athletic apparel company has pushed gross margins towards 50% with a focus on selling full priced performance gear. The stock is cheap trading at a forward EV/S multiple of 1.7x and far below the 4.6x multiple of Nike. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Based on strong results from peers and a post-COVID rebound,  Under Armour  ( UA ,  UAA ) was forecast to report a massive quarter for the period ending June. In no real surprise, the athletic apparel firm smashed estimates and the stock is still surging. My  investment thesis  remains Bullish on the stock with substantial upside to obtain peer valuation multiples.   Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details.   Update - Nov. 2   Under Armo...

  Under Armour smashed analyst estimates, producing revenues topping 2019 levels. The company boosted gross margins by 370 basis points to 50.0%, providing substantial leverage to the bottom line. The stock is cheap trading at 2x sales targets, far below peers. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » While  Under Armour  ( UAA ,  UA ) reported a  strong quarter  that blew past analyst estimates, the stock is selling off despite the company smashing past 2019 numbers. The performance athletic apparel maker is in the midst of a massive turnaround, but the market isn't able to distinguish the rebound from Q1 shutdowns. My  investment thesis  remains more bullish on the stock long term. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

Under Armour continues to make progress in innovating new products that will return the company to the premium market. The company remains on path to boost gross margins to 48%. The stock is in an uptrend with the initial target to overtake the P/S valuation multiple of Nike with a long-term target of Lululemon at over 5x sales estimates. Some hints at new product innovation should have investors taking another look at  Under Armour  ( UA ,  UAA ). A lot of investors want a money maker now, but the value in the stock is based on the future opportunity in the premium global athletic apparel and footwear sector. The stock is looking solid with  strong resistance  broken at $24. Read the full article at Seeking Alpha.  More commentary on WhoTrades Disclosure: Long UA. Please see the disclaimer page for more details. 

The market has fought owning Under Armour (UA, UAA) for years now, but a simple reason exists to own the stock. As long as the company has a relevant brand in turnaround mode, wise investors will utilize the P/S multiple to derive value.

Under Armour provided 2023 financial targets at an Investor Day. The athletic apparel company has long-term plans for 10%+ operating margins. Based on company projections and peer margins, my 2023 EPS projection approaches $2. In a much anticipated event where   Under Armour   ( UA ,   UAA ) discussed long-term growth targets, the market was apparently disappointed with the updated 2023 projections. My   bullish investment thesis   has long held that the athletic apparel company was under-delivering on margins, and their updated business model actually reinforces that thesis despite the initial 10% dip in the stock. Read the full article on Seeking Alpha. Disclosure: Long UA. Please review the disclaimer page for more details. 

Under Armour has quickly learned how to market footwear to generate buzz. The footwear segment is where the athletic apparel company has the most growth potential. The stock remains cheap at 2x forward sales estimates. Under Armour  ( UA ,  UAA ) made a huge mistake while trying to grow too fast. The move into discount stores hurt the brand value and the recent release of shoes for "The Rock" shows the company has finally regained a marketing edge that will reward shareholders now and in the future. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

Under Armour reported Q4 results that beat the worst fears. Margins remain under pressure, but the market missed the turnaround story and ultimate value of the brand. New footwear platform has a promising start while the stock trades at a compelling valuation in comparison to peers. Most importantly, the chart and P/S ratio suggest the stock heads higher. Investors  missing the opportunity  to own  Under Armour  ( UA ,  UAA ) below $15 the last few months completely overthought the story. The company now has a turnaround in place and the opportunity exists to invest in the founder attempting to make the athletic apparel maker great again. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

Under Armour is rallying due to positive data points from Steph Curry and his latest shoe. The stock suffered partly due to the failure of the Curry 3. Footwear remains a category where the company has tremendous growth opportunities, though the on-the-court numbers don't support a big uptick from Curry. Over the last couple of days,  Under Armour  (NYSE: UA )(NYSE: UAA ) has gotten a bid from excitement surrounding Steph Curry. The combination of his team on the verge of another championship and some excitement surrounding the launch of his new shoes in the fall naturally has investors perking up to the possibilities that the athletic apparel company has a bright future. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

The success of the last decade is leading to increased competition. Increasingly, Adidas and Under Armour are making strides in endorsement deals by ramping up spending. Nike is an expensive stock for one facing a more competitive environment. In the business world, the typical price of success is increased competition. A company that has seen huge stock gains or generates large profits can expect a flood of new competition. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Under Armour split the stock into a new class this year in order to allow the CEO to unload shares and maintain voting power. The stock has traded weak over the last year as costs continue to pressure results. A strong case can be made for value in the Class C shares. Back in 2015,  Under Armour (NYSE: UA )  decided to split the stock into another class of shares. The deal was signaled as a stock dividend, but the real intent of the move was to allow the CEO an ability to unload shares without losing voting power.  Read the full article on Seeking Alpha. No positions mentioned. Please read the disclaimer page for more details.

Fitbit easily smashed Q4 estimates due to a strong holiday season. The weak Q1 guidance is a mixed blessing by adding to worries over the fad nature of the business and providing a lower entry point. The valuation in the stock is finally compelling with the market no longer having any expectations from the company. Despite the strong holiday sales, Fitbit (NYSE: FIT ) trades near post-IPO lows due to the self-inflicted wounds and market fears  highlighted  in my  previous research . Unfortunately, for investors, the company has a long way to go to prove that the fitness tracking business isn't a fad and Under Armour (NYSE: UA ) isn't a competitive problem.  Read the full article Seeking Alpha.  Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Under Armour generated strong revenue growth during Q3'15 that led to beating analyst estimates. The company is working on numerous initiatives that are increasing revenues at the cost of margins. The stock valuation isn't justified by growth path laid out by the company. The quarterly results for Under Armour (NYSE: UA ) were generally impressive, but the stock sank over 5% as the retailer couldn't match sky-high investor expectations. The stock has struggled over the last couple of months when it exceeds $100. Even bullish revenue targets released at the Investor Day a month ago were met with the stock hitting resistance around $105. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Summary Under Armour reported solid Q1'15 earnings with strong revenue growth. The athletic retailer continues to obtain success from endorsements of athletes before they become a huge success. The forecasted 2015 numbers and future growth potential doesn't justify a stock trading over 75x 2015 EPS estimates.    The recent success of athlete endorsers Jordan Spieth at the Masters and Steph Curry during the current NBA season are no doubt exciting and unexpected benefits to Under Armour (NYSE: UA ) . Investors though need to check the enthusiasm over the recent success of these two athletes. It takes continued success and time to become a Tiger Woods or LeBron James.  Read the full article on Seeking Alpha.  Disclosure: No positions mentioned.  Please read the disclaimer page for more details.

Anyone who follows the sporting goods sector or retail in general probably identifies Dick's Sporting Goods ( NYSE: DKS     ) as a premier operator in the industry. The company has long generated strong margins and profits while expanding its retail base to grab market share from struggling competitors such as Sports Authority . Unfortunately as Dick's store base recently surged beyond 500 locations, the rate of growth has considerably stalled, leaving investors wondering if the growth years are in the rear view mirror. During the recent analyst day, the management team laid out a 5-year plan of growing the revenue base to $10.0 billion from the $5.8 billion generated in 2012 and expanding margins via several initiatives. One of the major goals is to develop a store concept beyond the maturing Dick's brand. Read the full article here . Disclosure: No position mentioned. Please read the declaimer page for more details.