Under Armour (UAA) shares achieved their ninth closing gain in the recent ten trading days, primarily driven by further stake increases from Fairfax Financial Holdings. According to the latest filing disclosed by the U.S. Securities and Exchange Commission, as of the most recent reporting date, Fairfax and its affiliated parties cumulatively hold over 30 million shares of Under Armour, representing 16.1% of its outstanding shares. This marks a significant increase from the previously disclosed 9% ownership level.
Despite the substantial rise in ownership to 16.1%, the market generally believes that Fairfax Financial Holdings will not initiate a proxy fight or push for a management overhaul, which aligns with its long-standing value investment philosophy. The company’s founder and CEO, Prem Watsa, is renowned for his conservative value investment approach and expertise in identifying undervalued assets in the market. His investment acumen and operational style have earned him the nickname “the Canadian Buffett.”
Under Armour’s latest second fiscal quarter results show a 5% year-on-year decline in sales and a loss of $0.04 per share, yet these figures still exceeded market expectations. The company has adjusted its performance guidance for fiscal year 2026: it expects the decline in revenue to narrow to 4%–5%, an improvement from the previous projection of 6%–7%; earnings per share are anticipated to reach $0.03–$0.05, higher than the previous range of $0.01–$0.02. This upward revision reflects the effectiveness of the company’s “brand premiumization” strategy, including a focus on core products, strengthening direct-to-consumer channels, and gradually reducing reliance on high-discount promotional models.
As of the latest closing, Under Armour’s stock price rose 7.53% to $5.14. Despite its recent strong performance, the stock has still declined nearly 40% year-to-date.
Fairfax Financial Holdings is headquartered in Toronto, Canada. It provides reinsurance, as well as property and casualty insurance, in Canada, the United States, and other international markets. The company also operates some non-insurance businesses, such as restaurants. Since its founding in 1985, Fairfax has been led by its Chairman and CEO, Prem Watsa.
