Goldman Sachs Reaffirms Hold Rating on Under Armour with $5.00 Price Target

Goldman Sachs reaffirmed their Hold rating on Under Armour (UAA) with a price target of $5.00, maintaining their Consumer Cyclical sector coverage. Analyst Brooke Roach has an average return of 6.4% and a 53.27% success rate on recommended stocks. Under Armour has a one-year high of $11.89 and a one-year low of $4.78, with an average volume of 12.02M.

Under Armour Inc. reported its Q1 2025 earnings on August 8, revealing a decline in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.02, falling short of the expected $0.03, marking a 33.33% negative surprise. Revenue also missed forecasts, coming in at $1.1 billion against an anticipated $1.13 billion [1].

Following the announcement, Under Armour’s stock price fell sharply by 17.46% in pre-market trading. The company’s market capitalization now stands at $2.19 billion, with a beta of 1.61 indicating higher volatility compared to the broader market [1].

Key Takeaways
Under Armour’s Q1 2025 EPS and revenue both missed forecasts. The stock price dropped by 17.46% in pre-market trading. North America revenue declined by 5%, while EMEA saw a 10% increase. The company is focusing on premium, performance-driven products. Under Armour anticipates a 6-7% revenue decline for FY2026 [1].

Company Performance
Under Armour’s Q1 2025 results reflect a challenging retail environment, with a 4% decline in revenue to $1.1 billion compared to the previous year. The company experienced a 5% revenue drop in North America, its largest market, while EMEA revenue grew by 10%. However, the Asia-Pacific region saw a significant 10% decrease [1].

Despite these challenges, the company improved its gross margin by 70 basis points to 48.2%. InvestingPro data shows the company maintains a healthy current ratio of 2.1, with liquid assets exceeding short-term obligations. The company’s overall Financial Health Score is rated as FAIR, operating with a moderate debt-to-equity ratio of 0.69 [1].

Market Reaction
Following the earnings announcement, Under Armour’s stock fell by 17.46% in pre-market trading, with the price dropping to $5.11 from the previous close of $6.27. This decline places the stock closer to its 52-week low of $4.62, highlighting investor concerns over the company’s performance and future outlook [1].

Outlook & Guidance
Looking ahead, Under Armour projects a 6-7% revenue decline for FY2026, with North America expected to see a low double-digit decline. The company anticipates a high single-digit growth in EMEA and a low teen percentage decline in APAC. Gross margin is expected to decline by 340-360 basis points, and operating income is projected to be about half of FY2025 levels [1].

Goldman Sachs recently reaffirmed their Hold rating on Under Armour (UAA) with a price target of $5.00, maintaining their Consumer Cyclical sector coverage. Analyst Brooke Roach has an average return of 6.4% and a 53.27% success rate on recommended stocks. Under Armour has a one-year high of $11.89 and a one-year low of $4.78, with an average volume of 12.02M [2].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-under-armour-q1-2025-misses-eps-forecast-stock-drops-93CH-4181091
[2] Goldman Sachs reaffirms Hold rating on Under Armour