GET DAILY SIGNALSUnder Armour (UA) Shares Drop 10-12% Following Mixed Q2 Earnings
Key Takeaways
- Under Armour reported second quarter fiscal 2027 revenue of $1.24 billion, down about 7% year over year from $1.33 billion.
- Adjusted earnings per share came in at breakeven ($0.00), modestly ahead of the roughly $0.01-per-share loss analysts had expected.
- Gross margin fell to 47.0%, down 30 basis points, pressured by currency, channel and regional mix, and pricing.
- The company raised its full-year operating income outlook but lowered its gross margin improvement forecast.
- Shares slid roughly 10% to 12% in premarket trading following the announcement.
- You can find more detail on this ticker's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
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Earnings Context and Why It Matters
Under Armour's second quarter fiscal 2027 results arrive amid a multi-year restructuring aimed at sharpening the brand, tightening inventory, and restoring sustainable profitability. With revenue declining across most regions and channels, I am watching closely to see whether the company's cost discipline and product reset can offset persistent demand softness in North America and Asia-Pacific. The quarter stands out because management trimmed its gross margin expectations for the year while raising its operating income range, signaling that transformation savings are flowing through even as external costs climb. The market's sharp reaction shows how sensitive sentiment remains to any shift in margin trajectory.
Breaking Down the Reported Results
For the second quarter of fiscal 2027, which ended September 30, 2026, Under Armour reported net revenue of $1.24 billion, a decline of about 7% from $1.33 billion in the prior-year period. The company posted a net loss of $425,000, compared with a net loss of $18.8 million a year earlier, while adjusted results came in at breakeven per share — slightly better than the consensus estimate of a roughly $0.01 loss. To put these figures in context, I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
North America revenue fell 7% to $737 million, while international revenue declined 7% to $509 million, or 9% at constant currency. EMEA and Asia-Pacific each fell 9%, while Latin America rose 3%. By channel, wholesale revenue decreased 6% to $725 million and direct-to-consumer revenue declined 8% to $494 million, with e-commerce down 12%. Apparel revenue fell 6% to $880 million, footwear dropped 11% to $234 million, and accessories declined 7% to $105 million.
Market Reaction and Investor Sentiment
Investors responded negatively to the mixed report, with UA shares falling roughly 10% to 12% in premarket trading. The decline came despite revenue and adjusted earnings per share landing roughly in line with, or slightly ahead of, consensus. The primary driver of the negative reaction was the lowered gross margin outlook, compounded by a larger-than-previously-expected headwind from the Middle East conflict, now estimated at about $45 million versus a prior view of $35 million. Sentiment reflects investor concern that external cost pressures are eroding the benefit of the company's restructuring savings even as management raises its operating income forecast.
Forward Outlook and Key Factors to Monitor
Under Armour maintained its expectation for a mid-single-digit revenue decline for fiscal 2027 but adjusted its margin targets. The company now expects gross margin to improve by 170 to 220 basis points, down from a prior forecast of 220 to 270 basis points, citing higher fuel and freight costs, inventory management actions, and foreign exchange headwinds.
At the same time, management raised its operating income range to $99 million to $119 million, up from $96 million to $116 million, while keeping adjusted operating income guidance at $140 million to $160 million. Earnings per share are now expected to range between a loss of $0.02 and a profit of $0.02.
Looking ahead, investors should monitor whether transportation and energy costs stabilize, since these factors directly influence the company's margin trajectory. Progress on inventory — which rose 4% to $1.1 billion — and the completion of the restructuring program, expected to be substantially finished by December 31, 2026, will also be important signals. Demand trends in North America and Asia-Pacific, e-commerce performance, and any recovery in footwear remain key watch items for future quarters.
Refining My Research Process
One tool I find helpful for quickly scanning peers and spotting technical setups is Tickeron's AI Screener. It lets me filter stocks by industry, patterns, and performance metrics in a more efficient way than manual searches, which has been useful when tracking names like Under Armour alongside broader apparel trends.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for UA turns positive, indicating new upward trend
UA saw its Momentum Indicator move above the 0 level on October 29, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned positive. In 60 of the 75 cases, the stock moved higher in the following days. The odds of a move higher are at 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for UA just turned positive on October 01, 2026. Looking at past instances where UA's MACD turned positive, the stock continued to rise in 34 of 46 cases over the following month. The odds of a continued upward trend are 74%.
UA moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for UA crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 58%.
Following a +9.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where UA advanced for three days, in 191 of 280 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 157 of 219 cases where UA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.
Bearish Trend Analysis
The 10-day RSI Indicator for UA moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 28 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 85%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
UA broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.531) is normal, around the industry mean (2.940). P/E Ratio (-4.426) is within average values for comparable stocks, (13.961). Projected Growth (PEG Ratio) (1.073) is also within normal values, averaging (0.686). Dividend Yield (0.000) settles around the average of (0.328) among similar stocks. P/S Ratio (0.423) is also within normal values, averaging (0.827).
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. UA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a designer of branded performance products for men, women and youth
Industry ApparelFootwear