Stifel Cuts Under Armour 2026 Revenue Outlook by 3%, Delays Turnaround
SF•Stifel cut Under Armour’s 2026 revenue outlook by 3% to $6.8 billion and trimmed its adjusted EPS forecast by $0.10 to $1.50, citing persistent inventory overhang. The firm pushed the expected turnaround into late 2026, flagging ongoing margin pressure from softer wholesale restocking.
1. Stifel Lowers 2026 Guidance
Stifel reduced its full-year 2026 revenue forecast for Under Armour from $7.02 billion to $6.80 billion, representing a 3% decline, and cut its adjusted EPS estimate from $1.60 to $1.50 per share. The revision reflects slower wholesale restocking and a persistent inventory build that continues to pressure gross margins.
2. Turnaround Timeline Extended
The firm now expects Under Armour’s operational turnaround to slip into late 2026, two quarters later than previously projected. Stifel analysts highlighted ongoing margin headwinds in North America and Europe, where excess retailer inventories have delayed order replenishments.
3. Key Risks and Implications
Persistent inventory overhang raises the risk of further markdowns, which could compress margins beyond current estimates. The delayed recovery intensifies scrutiny on Under Armour’s cash flow generation and may prompt additional cost-cutting measures if wholesale demand does not accelerate.
