FAQ: Under Armour's Sales Outlook and Tariff Warning Impact

Why did Under Armour shares tumble?

Under Armour shares tumbled more than 15% due to weaker-than-expected earnings and a warning about further margin pressure from tariff-related supply chain costs.

What was Under Armour’s revenue in the fiscal first quarter?

Under Armour reported a 4% decline in fiscal first-quarter revenue to $1.1 billion, missing Wall Street expectations.

How did Under Armour’s sales perform in North America?

North America sales, Under Armour’s largest regional segment, declined 5% to $670 million.

What was the performance of Under Armour’s international revenue?

International revenue dipped 1% to $467 million, with mixed regional performance including a 10% growth in EMEA but declines in Asia-Pacific and Latin America.

How did Under Armour’s product categories perform?

Apparel revenue fell 1%, footwear sales plummeted 14%, but accessories revenue rose 8%.

What is Under Armour’s outlook for the second quarter?

Under Armour forecasts a second-quarter revenue decline of 6% to 7%, with North America expected to fall by low double digits and earnings per share significantly below analyst expectations.

What factors are affecting Under Armour’s margins?

Margin pressures are attributed to potential tariff impacts, higher supply chain costs, and continued challenges with sales channel mix.

How did investors react to Under Armour’s report?

Investors reacted swiftly, sending shares of both Under Armour’s Class A and Class C stock sharply lower in early trading.