UAA's International Momentum Builds on Strength in Latin America, EMEA

Under Armour, Inc. UAA delivered encouraging signs of resilience across its international operations in the third quarter of fiscal 2026, even as overall revenues remained under pressure. Performance outside North America continues to benefit from tighter execution, disciplined promotions and improving brand relevance, supporting the company’s broader turnaround efforts.

Revenues from the international business rose 3% year over year, or 1% on a currency-neutral basis, to $577 million. The increase highlights improving demand trends in key overseas markets and contrasts with ongoing declines in North America, reinforcing the growing importance of international operations to overall stability.

Within the segment, EMEA remained a steady contributor. Revenues increased 6% year over year to $315.8 million, supported by growth in both wholesale and direct-to-consumer channels. Management emphasized that disciplined promotional management is protecting pricing integrity while reinforcing partner confidence, enabling the region to deliver steady, reliable outcomes.

Trends in the Asia Pacific remained pressured, with revenues down 5%, but the decline marked a sequential improvement from the first half. Leadership said decisive inventory actions, sharper assortments and upgraded management teams are positioning the market for stabilization over the next 12 months. Latin America delivered standout growth, with revenues rising 19.7% to $70.6 million, driven by broad-based strength across channels and improving brand awareness.

International visibility is also benefiting from major global sports moments. Athlete participation on world stages and strong football-focused campaigns across Europe are driving engagement, cultural relevance and full-price sell-through. Executives view these activations as repeatable proof points that the brand is reconnecting with athletes in meaningful ways.

Management expects EMEA revenues to grow 9% in fiscal 2026, positioning the region as a key offset to near-term pressure elsewhere. With international markets delivering improving consistency, these operations are playing an increasingly important role in supporting Under Armour’s path toward stabilization and more predictable performance in fiscal 2027.

UAA’s Price Performance, Valuation & Estimates

Shares of the company have gained 55.2% in the past three months compared with the industry’s 9.8% growth.

From a valuation standpoint, Under Armour is trading at a forward 12-month price-to-sales ratio of 0.60X, down from the industry average of 2.40X.

The Zacks Consensus Estimate for Under Armour’s fiscal 2026 earnings implies a year-over-year decline of 67.7%, whereas the same for fiscal 2027 indicates an uptick of 125.5%. Estimates for fiscal 2026 have been upbound by 5 cents and the same for 2027 have been upbound by 2 cents, respectively, in the past seven days.

Under Armour currently has a Zacks Rank #3 (Hold).

Stocks to Consider

We have highlighted three better-ranked stocks, namely FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 450% and 7.1%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings indicates a decline of 20.7%, while the same for sales implies growth of 2.6% from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 26% and 17.6%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 4.9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research