Under Armour Inc (NYSE:UAA). (UA) shares reached a 52-week high of $9.34, reflecting a robust period of growth for the athletic apparel company. This milestone underscores a significant recovery, with the stock witnessing a 15.14% increase over the past year. Investors have shown increased confidence in Under Armour (NYSE:UA)'s strategic initiatives and its ability to navigate the competitive retail landscape, which has been marked by challenges such as supply chain disruptions and shifting consumer trends. The company's focus on innovation and brand strengthening appears to be paying off, as evidenced by the stock's impressive climb to this new high.
In other recent news, Under Armour has updated its Fiscal 2025 restructuring plan, which includes exiting a primary distribution facility in Rialto, California. The company anticipates incurring pre-tax restructuring and related charges of approximately $140 million to $160 million during Fiscal 2025 and Fiscal 2026. In response to these changes, Under Armour has revised its fiscal 2025 outlook, with an operating loss now projected to be between $220 million and $240 million. Diluted loss per share is forecasted to be $0.58 to $0.61, with an adjusted diluted earnings per share of $0.19 to $0.22.
Adding to these recent developments, Under Armour reported a strong fiscal performance that beat expectations in its first quarter. BofA Securities responded by raising its price target for Under Armour from $8.00 to $9.00, while maintaining a neutral rating on the shares. Under Armour has reiterated its sales guidance for the fiscal year 2025, predicting a low double-digit decline, but has slightly raised its EPS forecast to a range of $0.19-0.22.
Lastly, Under Armour is implementing changes in marketing strategy, focusing on full-price selling and storytelling to boost brand affinity. The company is also expanding its influencer marketing and collegiate partnerships, including a new agreement with USA Football. Operational enhancements are underway with a focus on supply chain modernization and direct-to-consumer improvements.
InvestingPro Insights
Under Armour's recent stock performance aligns with several key insights from InvestingPro. The company's shares have demonstrated strong momentum, with InvestingPro data showing a 28.55% price total return over the last three months and a 22.87% return over the past six months. This upward trajectory supports the article's observation of increased investor confidence and the stock's climb to a new 52-week high.
InvestingPro Tips highlight that Under Armour operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations, suggesting a solid financial foundation that may be contributing to investor optimism. Additionally, analysts predict the company will be profitable this year, which could further bolster the stock's performance.
It's worth noting that Under Armour's market capitalization stands at $3.64 billion, with a price-to-book ratio of 2.0 for the last twelve months as of Q1 2025. These metrics provide context to the company's valuation as it reaches new stock price highs.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Under Armour, which could provide valuable perspective on the company's financial health and future prospects.
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