Telsey Advisory Group analyst Cristina Fernández noted that the Under Armour brand and the company’s profitability are not strong enough currently to manage the cost of tariffs without a significant bottom-line impact.
Under Armour (UAA) received several price target cuts from Wall Street following its first-quarter results, where the sportswear maker noted that higher tariff costs will dent its earnings, and a cautious consumer is resulting in slowing demand for its products.
Retail sentiment remained unchanged in the ‘extremely bullish’ territory, with chatter at ‘extremely high’ levels, according to data from Stocktwits.
Shares of Under Armour were up nearly 3% in premarket trading and nearly 34% so far this year.
Telsey Advisory Group cut its price target to $5 from $7 and maintained its ‘market perform’ rating. Analyst Cristina Fernández noted that Under Armour’s outlook for the year shows the difficulty of raising prices at the same time while the company is trying to elevate the brand by weaning off promotions and transforming its portfolio toward better and best products. “In other words, the Under Armour brand and the company’s profitability are not strong enough at the moment to manage the cost of tariffs without a significant bottom line impact,” she added.
Citigroup also lowered its price target on Under Armour to $5.50 from $6 and maintained a ‘Neutral’ rating, according to TheFly. “The company’s second quarter guidance indicates it faces challenges in the current macro environment,” said Citigroup analyst Paul Lejeuz, adding that he believes Under Armour’s market share losses can continue into the summer of 2026.
Under Armour had brought back founder Kevin Plank as CEO to reverse its market share losses and turn the company around at a time when Roger Federer-backed On and Deckers Outdoor’s Hoka have been gaining momentum in the running shoe market.
The stock has fallen over 30% in the last 12 months.
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