Under Armour Reports Q3 Results Amid Restructuring Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
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Should l Buy UAA?
Source: moomoo
Under Armour's stock fell 9.67% as it crossed below the 5-day SMA, reflecting investor concerns following its Q3 fiscal 2026 financial results.
The company reported net revenues of $1.33 billion for Q3 FY2026, a 5.2% year-over-year decline, primarily driven by a 10.3% drop in North America. The ongoing restructuring plan is expected to cost up to $255 million, indicating significant challenges in enhancing operational efficiency. Despite these hurdles, Under Armour's adjusted operating income of $26.41 million suggests potential improvements in core business performance, and management remains optimistic about future stability.
The implications of these results highlight the need for Under Armour to navigate its restructuring effectively while addressing regional performance disparities, particularly in North America, to regain investor confidence.
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Analyst Views on UAA
Wall Street analysts forecast UAA stock price to fall
19 Analyst Rating
4 Buy
12 Hold
3 Sell
Hold
Current: 7.720
Low
4.00
Averages
5.69
High
9.00
Current: 7.720
Low
4.00
Averages
5.69
High
9.00
About UAA
Under Armour, Inc. is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories for men, women and youth. Its primary business operates in four geographic segments: North America, comprising the United States and Canada, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America. Its apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). Its footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Its accessories primarily include athletic performance gloves, bags, headwear and socks. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce Websites and brand and factory house stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Restructuring Agreement: The company has entered into a Restructuring Support Agreement with its secured lenders and commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to maintain operations and seek a buyer through restructuring.
- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
See More
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- Rating Downgrade Impact: Citi Research downgraded Under Armour's stock from Neutral to Sell, resulting in a share price drop of up to 9.5% on Tuesday, reflecting market concerns about its future performance.
- Sales Growth Slowdown: Sales growth in the EMEA region for Under Armour decreased from high single digits in the first half of 2026 to just 2% in Q3, indicating that macroeconomic pressures are impacting its performance.
- Brand Competition Pressure: Competing against strong brands like Nike (NKE) and Adidas (ADDYY), Under Armour must demonstrate that its brand resonates with consumers to secure better market share with key retailers like DICK's Sporting Goods and JD Sports.
See More
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- Impact of Downgrade: The downgrade has raised concerns among investors about the company's future performance and market position.
See More
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