Under Armour's 2026 Tariff Hit Threatens Turnaround Momentum

Under Armour, Inc. (NYSE:UAA) faces a challenging stretch as it works through a brand and product reset amid soft consumer demand.

The sportswear company is also staring down steep tariff-related cost pressure in fiscal 2026, which could weigh heavily on earnings.

Telsey Advisory Group analyst Cristina Fernández reiterated a Market Perform rating on Under Armour, with a price target of $5.

Under Armour will release its second-quarter fiscal 2026 results on Nov. 6.

Also Read: What’s Going On With Bloom Energy Stock Today?

Under Armour is pushing a product overhaul amid weak consumer confidence, rising competition from upstarts, and higher tariff-driven costs.

The company has curbed promotions, streamlined SKUs, cut expenses, and hired new talent, but demand has not yet turned meaningfully higher. In fact, the analyst still expects a sharp earnings hit in fiscal 2026 from tariffs, which could stall the turnaround.

Focus Areas Ahead

Fernández says the second-quarter call should address direct-to-consumer and wholesale demand, an updated net tariff cost estimate and mitigation plan, and consumer response to new products.

She also seeks details on promotional levels and holiday plans, wholesale order books for spring and summer 2026, and guidance for the third quarter with updated commentary on fiscal 2026.

Fernández said her EPS estimate is 2 cents, matching FactSet consensus and guidance of 1 to 2 cents. She projects sales to contract 6.5%.

The analyst also forecasts SG&A to deleverage 575 basis points year over year.

Fernández models fiscal 2026 EPS of 6 cents, versus the 5-cent FactSet view, with revenue down 4.3%.

UAA Price Action: Under Armour shares were up 0.22% at $4.56 at the time of publication on Friday. The stock is trading near its 52-week low of $4.47, according to Benzinga Pro data.

Read Next:

• What’s Going On With Trump Media Stock Today?

Photo: Shutterstock