Under Armour (UAA) Is Up 5.4% After Fairfax Consolidates 10% Stake Indirectly - Has The Bull Case Changed?

• In late December 2025, Fairfax Financial Holdings, led by V. Prem Watsa, increased its indirect stake in Under Armour by purchasing 13.2 million Class A and Class C shares, consolidating all of Watsa’s holdings under indirect ownership and reducing his direct ownership to zero.
• This consolidation by a major 10% shareholder hints at a potentially more hands-on role in Under Armour’s direction, which could matter for how the company executes its ongoing brand-elevation and operational plans.
• We’ll now examine how Fairfax’s enlarged, consolidated stake could influence Under Armour’s investment narrative and expectations around its strategic execution.

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Under Armour Investment Narrative Recap

To own Under Armour today, you need to believe the brand-first reset, with tighter assortments and more premium positioning, can eventually translate into healthier margins despite current revenue declines and unprofitability. Fairfax’s enlarged, consolidated stake does not change the near term reality that execution risk around wholesale and e commerce weakness, especially in North America and APAC, remains a central issue to watch.

The recent confirmation of FY 2026 guidance, calling for mid single digit revenue declines and modest operating income of US$19 million to US$34 million, sits in the background of this renewed investor attention. That outlook keeps the focus on whether Under Armour can stabilise demand across regions while its larger shareholders and a refreshed board support consistent follow through on the brand elevation plan.

Yet investors should also be aware of how sustained margin pressure from tariffs and supply chain costs could...

Read the full narrative on Under Armour (it's free!)

Under Armour's narrative projects $5.4 billion revenue and $191.0 million earnings by 2028.

Uncover how Under Armour's forecasts yield a $5.87 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community span roughly US$4.32 to US$21.14 per share, showing wide disagreement on Under Armour’s potential. Set against ongoing guidance for declining revenue and thin profitability, this spread underlines why you may want to weigh several risk and recovery scenarios before forming your own view.

Explore 16 other fair value estimates on Under Armour - why the stock might be worth over 3x more than the current price!

Build Your Own Under Armour Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Under Armour research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Under Armour research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Under Armour's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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