Under Armour Tanks 18% After Weak Earnings and Guidance
Under Armour shares plummeted 18% on Tuesday after the sportswear retailer reported an adjusted loss of 3 cents per share for fiscal Q4 2026, slightly below analysts' consensus estimate of a 2-cent loss. The company also completed its third consecutive fiscal year of declining sales and issued weak guidance for fiscal 2027.
Key Numbers
Shares of Under Armour (NYSE: UAA) plunged 18% on Tuesday after the sportswear retailer reported an adjusted loss of 3 cents per share for the fiscal fourth quarter of 2026, slightly below analysts' consensus estimate of a 2-cent loss. The company also finished its third consecutive fiscal year of declining sales and issued weak guidance for fiscal 2027.
Key Financial Results
| Metric | Fiscal Q4 2026 | Consensus Estimate |
|---|---|---|
| Adjusted EPS | -$0.03 | -$0.02 |
| Revenue | Not disclosed | Slight growth expected |
The company did not provide full revenue details in the release, but analysts had expected slight revenue growth and adjusted earnings of 23 cents per share.
Highlights from the Release
The company cited continued weak demand for its sportswear products, leading to a third consecutive year of declining sales. The adjusted loss reflects ongoing operational pressures.
Future Guidance
Under Armour issued weak guidance for fiscal 2027, raising concerns among investors about the company's ability to return to growth amid intense competition from brands like Nike and Adidas.
Impact on the Stock
The stock fell 18% in Tuesday trading, reflecting investor disappointment with the results and guidance. The stock lost a significant portion of its market value in a single session.
What This Means for Investors
Under Armour's results highlight the ongoing challenges the company faces in the competitive sportswear market. With sales declining for the third consecutive year and weak guidance, the stock may face further pressure in the near term. Investors should monitor the company's ability to execute its turnaround strategy.
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