Under Armour Inc Class C
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| ^! | LOCK|Kx | LOCK|S@b^#?^ |
Under Armour Earnings: Shares Soar After Second-Quarter Earnings Beat, Still Underpriced
Under Armour’s fiscal 2025 second-quarter sales fell 11% (a bit better than our 12% decline estimate) as CEO Kevin Plank continued to implement his restructuring plan. Yet, both its Class A and C shares were up by mid-20s percentages on Nov. 7 as its margins were significantly better than expected. We also think there was significant short covering. We expect to lift our $14 per share fair value estimate (on both classes) by a mid-single-digit percentage on the results and continue to rate shares as undervalued. We rate Under Armour as no-moat but regard its position in performance sportswear as a strength.
