TLDR:
- Under Armour stock up 6.1% in recent trading
- Analysts have mixed ratings but average “Hold” recommendation
- Company beat Q2 earnings estimates, revenue down 10.1% YoY
- DTC business and loyalty program showing strength
- Stock up 27.6% in past 3 months, outperforming industry
Under Armour (NYSE:UAA) has seen its stock price surge 27.6% over the past three months, outpacing both industry peers and the broader S&P 500 index.
On Monday, October 14, the stock was up 6.1% in mid-day trading, reaching as high as $8.84 before settling at $8.82. This recent rally has brought Under Armour shares near their 52-week high of $9.50, achieved in December 2023.

The company’s stock performance comes amid mixed analyst sentiment.
While some firms have upgraded their ratings and price targets, others maintain a cautious stance. BMO Capital Markets recently boosted its price target from $10 to $11, rating the stock as “outperform.”
Similarly, Stifel Nicolaus raised its target from $9 to $10 with a “buy” rating. However, Telsey Advisory Group reiterated a “market perform” rating with a $7 price target. Overall, the stock has an average rating of “Hold” among analysts, with a consensus price target of $7.57.
Under Armour’s most recent quarterly earnings, released on August 8, exceeded expectations. The company reported earnings per share of $0.01, surpassing the consensus estimate of -$0.08. However, revenue for the quarter came in at $1.18 billion, representing a 10.1% decrease compared to the same period last year. Despite the revenue decline, Under Armour’s performance was viewed positively given the challenging retail environment.
One bright spot for the company has been its direct-to-consumer (DTC) business. Under Armour has been focusing on expanding its online presence and optimizing retail strategies.
This approach not only helps boost profit margins but also allows the company to build stronger connections with customers. The introduction of the full-price Brand House concept has shown promising early results, driving increased productivity and higher revenue per visitor.
The company’s UA Rewards loyalty program has also demonstrated rapid growth, attracting nearly five million members within its first year in North America. Approximately 60% of North American DTC revenues now come from UA Rewards members, with the program contributing to higher revenue per consumer and increased repurchase rates.
Under Armour’s “Protect This House” initiative aims to strengthen its market presence by focusing on key priorities. These include igniting global brand appeal through innovative marketing strategies, emphasizing superior design and product quality, and driving growth in the U.S. market.
The company is also streamlining its product offerings, reducing its Stock Keeping Unit count by 25% to focus on areas with the highest returns.
Cost management and operational efficiency have been additional focus areas for Under Armour. In the first quarter of fiscal 2025, the company’s gross margin increased by 110 basis points to 47.5%, driven by lower levels of discounting and promotions, supply-chain benefits, and reduced freight costs. This improvement in profitability has made the stock more attractive to growth-focused investors.
From a valuation perspective, Under Armour’s stock appears relatively expensive compared to industry peers. The company’s forward 12-month price-to-earnings ratio stands at 30.83, higher than the industry average of 13.05.
However, some analysts argue that the premium is justified given Under Armour’s focus on product innovation, DTC expansion, and improving operational efficiency.
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