Under Armour's Profitability and Strategy Amid Tariffs

What is the main reason Under Armour expects its profit to be cut in half in 2025?

Under Armour expects its profit to be cut in half in 2025 due to an additional $100 million in costs tied to trade tariffs.

How is Under Armour planning to counter the impact of tariffs?

Under Armour is countering the tariff impact by raising prices, streamlining its product lineup, and repositioning the brand at a more premium level.

What are some examples of Under Armour’s price increases?

Examples include raising the price of its signature tech T-shirt to $25 and selling a hat at $45, nearly double the price of most comparable products in the market.

How has Under Armour’s revenue been affected recently?

Under Armour’s revenue fell 4% in the first quarter to $1.1 billion and is projected to decline another 6% to 7% in the second quarter.

What positive financial progress has Under Armour made despite the challenges?

Gross margins improved by 70 basis points in the latest quarter, aided by a stronger product mix and pricing discipline.

How does Under Armour’s current sales performance compare to 2022 levels?

Sales remain more than 14% below 2022 levels, although the pace of sales decline has moderated from double-digit drops.

What challenges does Under Armour face in the market according to Neil Saunders?

Neil Saunders notes that Under Armour struggles to stand out in a crowded market and risks being perceived as a commodity product compared with trendier names like Hoka and On.

Who is the Chief Executive of Under Armour mentioned in the article?

The Chief Executive of Under Armour mentioned in the article is Kevin Plank.

Where is Under Armour based?

Under Armour is based in Baltimore.

What is the source of the additional costs Under Armour is facing?

The additional costs Under Armour is facing are tied to trade levies, specifically tariffs.