Under Armour Q4 Earnings Preview: Are Investors 'Better Off Hiding Out, Literally, Under Armor' Than Buying Stock?

Apparel company Under Armour UAAUA could highlight how the latest China tariff news could be good news when the company reports fourth-quarter financial results before market open Tuesday.

Earnings Estimates: Analysts expect Under Armour to report fourth-quarter revenue of $1.16 billion, down from $1.33 billion in last year's fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and in eight of the last 10 quarters overall.

Analysts expect the company to report a loss of 8 cents per share, down from a profit of 11 cents per share in last year's fourth quarter.

The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

What Analysts Are Saying: Demand and guidance are two key areas in Under Armour's quarterly results that Telsey Advisory Group analyst Cristina Fernandez will be watching.

The analyst reiterated a Market Perform rating and lowered the price target from $10 to $7 ahead of the quarterly results.

Fernandez said she will be watching to see how fiscal 2026 is shaping up and how consumers are responding to new product offerings.

The analyst also said Under Armour needs to talk about tariffs. The company previously said it gets only 3% of items from China, but is exposed to other Asian countries with tariffs.

For Fernandez to become more bullish on the stock, she said it would take details on the company's distribution strategies and more signs of revenue growth.

Freedom Capital Markets Chief Global Strategist Jay Woods offers a pun on the apparel stock ahead of quarterly financial results.

"For long-term shareholders of Under Armour, they would be better off hiding out, literally, under armor than trying to make money by owning the stock," Woods said in a weekly newsletter.

Woods said the all-time high for the stock coincided with the height of the Golden State Warriors and Stephen Curry winning championships.

"Coming into earnings the company is trading just above all-time lows and is looking for a new catalyst to turn things around."

Woods said the good news is there is a "near-term opportunity to watch."

The market strategist highlighted technicals for the stock and the 20-day moving average being a point that has led to short-lived rallies. Woods said upward momentum could lead to a larger rally.

"It's not a pretty picture, but risk/reward metrics for a short-term trade and potential near-term bottom look possible."

Here are other recent analyst ratings on Under Armour and their price targets:

UBS: Maintained Buy rating, raised price target from $7 to $8
Wells Fargo: Maintained Equal-Weight rating, lowered price target from $7 to $4
Citigroup: Maintained Neutral rating, lowered price target from $8 to $6

Key Items to Watch: Under Armour's quarterly results come in between quarterly reports from rival Nike Inc NKE.

Nike reported a 12% year-over-year decline for footwear revenue, it's largest revenue decline on a year-over-year basis for the segment in more than a decade.

Under Armour reported footwear sales declined 9% year-over-year in the third quarter. Analysts and investors will be closely monitoring this category to see how the company's performance stacks up against Nike and to hear management's insights on new products, competition and market share.

International could be another key area to watch. Under Armour saw international revenue decline 1% year-over-year in the third quarter.

Tariffs will be a major talking point for analysts. Under Armour's report will come days after the United States and China agreed to a reduction in tariffs on goods imported to each country. The timing of the trade deal could play into Under Armour's favor, with the company now needing to account for only a smaller tariff amount if factoring this into guidance or commentary.

While many know that NBA star Steph Curry has a deal with Under Armour, the company continues to sign other athletes to endorsements. The company's latest deals include several 2025 NFL Draft Picks, including first overall pick Cam Ward.

Expected to be the starting quarterback for the 2025 NFL season, Ward could become a superstar in the league and provide a boost to Under Armour.

"Joining Under Armour is more than just a sponsorship deal. It's a partnership," Ward said.

UAA Price Action: Under Armour stock was up 6% to $6.20 on Monday versus a 52-week trading range of $4.78 to $11.89. Under Armour stock is down 24.3% year-to-date in 2025, while shares are down around 10% in the last year.

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