Whereas Underneath Armour Inc UAA has the potential for a turnaround in the long run, it may face margin strain from tariffs and wholesale uncertainty within the close to time period, based on BofA Securities.
The Underneath Armour Analyst: Analyst Lorraine Hutchinson reiterated a Impartial ranking, whereas lowering the value goal from $8 to $6.50.
The Underneath Armour Thesis: The corporate may generate weaker gross sales and decrease margins by means of fiscal 2026 and 2027, primarily because of tariffs, Hutchinson stated within the observe.
Try different analyst inventory scores.
Underneath Armour had reported adjusted earnings in keeping with expectations within the first quarter, as softer gross sales had been offset by value management, she added.
Administration guided to second-quarter gross sales and margins in need of Avenue expectations, reflecting a 6%-7% decline in gross sales and gross margin contraction of 340-360 foundation factors (bps), the analyst said.
“Administration famous each the buyer and wholesale companions have been barely extra hesitant in buying habits however 2Q ought to mark the weakest gross sales development quarter of the 12 months,” she additional wrote.
UAA Value Motion: Shares of Underneath Armour had declined by 4.50% to $5.20 on the time of publication on Monday.
Learn Extra:
• Underneath Armour Analysts Slash Their Forecasts After Q1 Outcomes
Photograph: City Pictures through Shutterstock
Market Information and Knowledge dropped at you by Benzinga APIs
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
