Under Armour's EMEA & Latin America Markets Support Global Growth

Under Armour, Inc. UAA is seeing resilient performance across its international business, providing a counterbalance to weakness in North America. In the first quarter of fiscal 2027, international revenues increased 5% year over year to $490 million, or 2% on a constant-currency basis. This compared with a 9% decline in North America, highlighting the relative resilience of overseas markets.

Europe, the Middle East and Africa (EMEA) was the standout market, with revenues rising 12% year over year and 10% on a constant-currency basis. Growth was driven by strength in the distributor business, which more than offset slight declines in direct-to-consumer and full-price wholesale operations. Management noted that the region continues to demonstrate resilience despite a highly competitive and promotional environment.

Latin America delivered growth, with revenues increasing 8% year over year, although constant-currency growth was a more modest 1%. Management characterized the region as more resilient than North America and parts of Asia-Pacific. Licensing revenue also increased 2%, supported by growth in international markets.

Asia-Pacific remained a weak spot, with revenues declining 7%, or 10% on a constant-currency basis, amid softer demand in China and Southeast Asia. China was additionally affected by stockouts in key styles and sizes and aggressive discounting by certain licensees. Under Armour plans to improve eCommerce execution, product availability and coordination with licensing partners.

The company expects fiscal 2027 revenues to decline at a low-single-digit rate in both EMEA and Asia-Pacific. Still, management is focused on protecting brand positioning and improving marketplace execution. Strength in EMEA and Latin America suggests overseas markets remain a meaningful source of resilience as Under Armour works to sharpen its global business.

UAA’s International Performance Compared With TPR & WWW

Tapestry, Inc. TPR and Wolverine World Wide, Inc. WWW are the key footwear companies competing with Under Armour in the global arena.

Tapestry posted strong international growth in the fourth quarter of fiscal 2026, with Europe revenues rising 19% year over year and Greater China sales increasing 28% on a constant-currency basis. Growth was supported by robust direct business, broad-based channel momentum, new customer acquisition and market share gains, while Other Asia revenues increased 22%, led by South Korea and Australia. Japan sales declined 4% as the company intentionally pulled back on promotions. Tapestry expects international markets to contribute an increasing share of growth, with fiscal 2027 guidance calling for mid-teens growth in Europe and Greater China, high single-digit growth in Other Asia and a return to growth in Japan.

Wolverine posted strong international growth in the second quarter of fiscal 2026, with international revenues rising 10.9% year over year to $277.2 million, or 9.6% on a constant-currency basis. Merrell and Saucony led the momentum, with international markets driving strong wholesale performance, while Merrell benefited from its key city strategy and Saucony continued to see particularly strong demand in Europe. Wolverine's global distribution network, which spans approximately 170 countries and territories, along with expanding partnerships and targeted activations across key international markets, continues to support brand momentum and global growth.

UAA’s Price Performance, Valuation & Estimates

Shares of the company have gained 6.6% in the year-to-date period against the industry’s 2.8% decline.

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From a valuation standpoint, Under Armour is trading at a forward 12-month price-to-sales ratio of 0.47X, down from the industry average of 2.38X. 

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The Zacks Consensus Estimate for Under Armour’s fiscal 2027 earnings implies a year-over-year decline of 8.3%, whereas the same for fiscal 2028 indicates an uptick of 64.6%. Estimates for fiscal 2027 and 2028 have been unchanged and revised downward by 4 cents, respectively, over the past 30 days.

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Under Armour currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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