Under Armour: Flat Stock as Earnings Exceed Fears

  • Under Armour’s Q3 earnings beat profit expectations but fell short on revenue
  • Analysts remain cautiously optimistic about the company’s future
  • The CEO acknowledges the need for improvement in U.S. sales
  • Wholesale revenue declined, while direct-to-consumer revenue increased
  • International growth contributed to overall revenue increase


Under Armour Inc. faced a mixed response from investors after releasing its fiscal third-quarter earnings report. While the company’s profit exceeded expectations, revenue fell short of consensus estimates. This comes as other major athletic apparel companies, such as Nike, Adidas, and Puma, have issued profit warnings in recent months. Despite the mixed results, analysts are cautiously optimistic about Under Armour’s prospects.

Earnings Report Highlights

Profit Exceeds Expectations

Under Armour reported net income of $114.1 million, or 26 cents per share, for the quarter. This beat the FactSet consensus of 11 cents per share. Adjusted per-share earnings came in at 19 cents, surpassing expectations.

Revenue Falls Short

While profit performed well, Under Armour’s revenue for the quarter was $1.486 billion, below the FactSet consensus of $1.503 billion. This decline in revenue reflects a challenging retail environment during the holiday season.

Acknowledging the Need for Improvement

Under Armour’s CEO, Stephanie Linnartz, acknowledged that U.S. sales are not yet at the desired level. She described driving U.S. sales as a “multiyear journey” and emphasized the need for the company to become a healthier business capable of returning to growth in its largest market.

Wholesale and Direct-to-Consumer Performance

Wholesale revenue declined by 13% to $712 million, while direct-to-consumer revenue increased by 4% to $741 million. This shift highlights the challenges faced by traditional retail channels and the growing importance of direct-to-consumer sales.

International Growth

Under Armour experienced a 7% increase in international revenue, driven by growth in EMEA (Europe, the Middle East, and Africa), Asia-Pacific, and Latin America. This international expansion helps offset the decline in North American revenue.


While Under Armour’s fiscal third-quarter earnings report had mixed results, the company’s profit beat expectations, providing some optimism for investors. However, the decline in revenue and the need for improvement in U.S. sales indicate ongoing challenges. Under Armour’s focus on direct-to-consumer sales and international growth may be key to its future success. As the company continues to navigate a changing retail landscape, investors and analysts will closely monitor its progress.

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