Uaa stock forecast recent channel checks suggest UAA

Recent channel checks suggest UAA retail partners are optimistic about new product launches. Forecast implications include possible margin lift from higher ASPs (average selling prices). Under Armour maintains an optimistic outlook for fiscal 2025, projecting a gross margin expansion of 125-150 basis points, an improvement from the previous forecast of 75-100 basis points. This growth is attributed to reduced promotional activity in DTC channels and favorable product costs. Adjusted SG&A expenses are anticipated to decline by a low-to-mid single-digit percentage, while adjusted operating income is expected to be $165-$185 million, up from the earlier estimate of $140-$160 million. Adjusted earnings per share are forecasted between 24 and 27 cents, compared with the prior range of 19-21 cents. Also, the fiscal third-quarter gross margin is predicted to increase 150-175 basis points, supported by supply-chain efficiencies, favorable foreign exchange and reduced discounting. So, based on the above formula, the ROE for Under Armour is: