Beneath Armour’s Q2 Gross sales May Be Weakest Of 2025: BofA Securities Explains – Beneath Armour (NYSE:UAA)

Whereas Beneath Armour Inc UAA has the potential for a turnaround in the long run, it may face margin stress from tariffs and wholesale uncertainty within the close to time period, based on BofA Securities.

The Beneath Armour Analyst: Analyst Lorraine Hutchinson reiterated a Impartial score, whereas lowering the worth goal from $8 to $6.50.

The Beneath Armour Thesis: The corporate may generate weaker gross sales and decrease margins by means of fiscal 2026 and 2027, primarily on account of tariffs, Hutchinson mentioned within the be aware.

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Beneath Armour had reported adjusted earnings in step with expectations within the first quarter, as softer gross sales have been offset by price management, she added.

Administration guided to second-quarter gross sales and margins wanting Avenue expectations, reflecting a 6%-7% decline in gross sales and gross margin contraction of 340-360 foundation factors (bps), the analyst acknowledged.

“Administration famous each the buyer and wholesale companions have been barely extra hesitant in buying habits however 2Q ought to mark the weakest gross sales development quarter of the 12 months,” she additional wrote.

UAA Worth Motion: Shares of Beneath Armour had declined by 4.50% to $5.20 on the time of publication on Monday.

Learn Extra:  
• Beneath Armour Analysts Slash Their Forecasts After Q1 Outcomes

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