Under Armour is executing a turnaround strategy with CEO Kevin Plank reporting Q3 FY2026 adjusted operating results exceeded expectations, though the company faced challenges in North America during the December quarter. The company expanded its fiscal 2025 restructuring strategy with total anticipated charges reaching $255 million, including actions to separate the Curry Brand and adjust contracts.
Cyborg Score Rationale
Profitability metrics are concerning with a net margin of -1.74% and EPS of -0.21. The Altman Z-Score of 1.88 places the company in the grey area signaling potential financial stress, while valuation metrics show P/S and P/B ratios near 10-year lows. However, major investor Prem Watsa acquired nearly $71M in shares signaling investor confidence.
Top Insights
The company maintains a strong gross margin of 47.4%, indicating strong product profitability potential despite operational inefficiencies.
Q1 FY2026 revenue declined 4% to $1.1B, with North American revenue down 5% to $670M and international revenue declining 1% to $467M.
The Curry Brand is projected to generate $100-$120 million in revenue by fiscal 2026 following planned separation.
Major investor Prem Watsa's $71M share purchase drove an 8.7% stock price increase in January 2026, signaling potential turning point.
Named Competitors
Performance Athletic Apparel & Footwear — World's largest sportswear company
Performance Athletic Apparel & Footwear — Global leader in athletic performance gear