What Happened?
Shares of athletic apparel company Under Armour (NYSE: UAA) jumped 2.6% in the afternoon session after the company announced a new partnership with fashion brand Feng Chen Wang as part of its strategy to grow its womenswear business.
The long-term creative relationship is tied to Under Armour's Rebel Daughter womenswear initiative and marks the first time the company has partnered with a Chinese designer for commercially sold products. The new line is set to launch in the fourth quarter of 2026.
This move appears aimed at strengthening Under Armour's position in the Asia-Pacific region, its second-largest international market. The region, which accounted for about a third of the company's total international revenue in 2026, saw a 13% increase in revenue during the fourth quarter, signaling a key growth area.
After the initial pop, the shares cooled down to $6.53, up 2.1% from the previous close.
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What Is The Market Telling Us
Under Armour’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock dropped 22.4% on the news that the company reported second-quarter results and issued a significantly weaker-than-expected outlook for the third quarter.
The sportswear maker's revenue for the second quarter came in at $1.13 billion, which met Wall Street's expectations but represented a 4.2% decline year-over-year. However, its adjusted earnings per share of $0.02 missed consensus estimates. The main concern for investors was the bleak guidance for the upcoming quarter.
Under Armour projected third-quarter revenue of $1.31 billion, falling 4.1% short of analyst forecasts. More dramatically, the company guided for adjusted earnings per share of just $0.02 at the midpoint, a stark contrast to the consensus estimate of $0.26.
Under Armour is up 23.3% since the beginning of the year, but at $6.53 per share, it is still trading 19.8% below its 52-week high of $8.14 from February 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Under Armour’s shares 5 years ago would now be looking at only $306.34.
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