Under Armour (UA) shares plummeted 5.01% in Monday's trading session following a series of analyst downgrades and lowered price targets. The sportswear maker's stock took a hit after reporting first-quarter fiscal 2026 results that missed Wall Street estimates and provided weak guidance for the second quarter.

Several prominent financial institutions, including BofA Securities, Citigroup, and Telsey Advisory, adjusted their outlook on Under Armour. BofA Securities lowered its price target to $6.50 from $8, citing near-term wholesale uncertainty and margin pressure from tariffs. The firm maintained its neutral rating, acknowledging the company's long-term "turnaround potential" while expressing concerns about immediate challenges.

Under Armour's fiscal Q2 forecast fell significantly below consensus estimates, with the company projecting revenue between $1.055 billion and $1.066 billion, well under the $1.374 billion analyst expectation. The outlook includes a low double-digit revenue decline in North America and a low-teens decline in Asia-Pacific. Margins are expected to remain under pressure throughout the year, largely due to the impact of tariffs, which are estimated to reduce gross margin by around $100 million this year. The company's management noted that both consumers and wholesale partners have shown slightly more hesitant purchasing behavior, contributing to the gloomy outlook.