Under Armour EPS Outlook Cut 20%, Price Target Slashed to $13
UAA•Stifel trimmed Under Armour’s 2026 adjusted EPS forecast by 20% to $0.85, citing slower wholesale recovery and elevated inventory levels. The firm also lowered its price target from $17 to $13 and warned margins may stay under 10% through year-end.
1. Analyst Revises Earnings Forecast
Stifel reduced its full-year 2026 adjusted EPS estimate for Under Armour by 20% to $0.85, down from $1.06 previously, pointing to a delayed wholesale channel rebound and persistent promotional activity.
2. Price Target and Margin Projection
The firm cut its price target from $17 to $13, forecasting operating margins below 10% through late 2026 due to continued inventory buildup and competitive pricing pressures.
3. Revenue Growth Outlook
Stifel expects organic revenue growth to remain flat in 2026, blaming weakened demand in core apparel lines and cautious retailer restocking.
4. Strategic Implications
Under Armour may need to accelerate cost-cutting measures and invest in direct-to-consumer channels to stabilize margins and clear excess stock.
