Sweat and Tears: Under Armour’s Stock Dives on Tariffs
Tariffs and Losses Send Under Armour’s Stock Sprinting Downhill
In a blow to athletic apparel enthusiasts and investors alike, Under Armour’s stock (UA) plummeted 20.6% in premarket trading on August 8, 2025, after a first-quarter fiscal 2026 earnings report that left Wall Street wincing. The Baltimore-based company, known for its sweat-wicking tees and bold branding, is grappling with a perfect storm of financial woes, tariff troubles, and a gloomy forecast that’s got shareholders lacing up their running shoes—for the exit.
The earnings report, released earlier today, painted a less-than-rosy picture. Under Armour posted a net loss of $2.6 million, or 1 cent per share, a marked improvement from last year’s $305.4 million deficit, but still a bitter pill for investors hoping for black ink. Adjusted earnings clocked in at 2 cents per share, missing the mark set by analysts at 3 cents. Revenue wasn’t much of a saving grace either, dropping 4% year-over-year to $1.134 billion. While this narrowly topped Wall Street’s $1.132 billion expectation, it’s hardly the kind of performance that inspires a victory lap.
The real gut punch came from the company’s forward guidance—or lack thereof. Under Armour’s second-quarter outlook is downright dreary, projecting a 6% to 7% revenue decline and a loss of 7 to 8 cents per share. Analysts, who were banking on a robust 26 cents per share in adjusted earnings, were left stunned. CEO Kevin Plank didn’t mince words, pointing to a looming $100 million hit from tariffs in fiscal 2026 that could slash profitability in half. “Tariffs are the uninvited guest at our profit party,” Plank might as well have said, as the company cited these costs as a major drag on its bottom line. Add to that $71 million in restructuring charges and another $39 million in “transformational expenses,” and it’s clear Under Armour is sweating more than an athlete in overtime.
The market’s reaction was swift and unforgiving. The 20.6% premarket plunge sets the stage for Under Armour’s worst single-day drop since May 2022, when it shed 23.8%. Year-to-date, the stock is down 19.8%, lagging far behind the S&P 500’s 8.36% gain and even underperforming rival Nike, which only slipped 1.7%. Zoom out further, and the picture gets uglier: a 33.09% loss over one year and a 46.04% decline over five years, compared to the S&P 500’s 90.18% surge in the same period. Ouch.
Regionally, the numbers tell a tale of uneven struggles. North America, Under Armour’s bread-and-butter market, saw revenue slide 5% to $670 million, while international sales held up slightly better, dipping just 1% to $467 million. But with no full-year guidance offered—a move that screams uncertainty—it’s no wonder investors are questioning whether Under Armour can sprint back to its former glory.
Analysts aren’t exactly cheering from the sidelines either. Recent ratings lean toward “Hold” or “Cautious Hold,” with concerns about revenue stagnation and the company’s ongoing strategic overhaul. While some pre-earnings call activity hinted at bullish hopes, the reality of today’s report has doused those flames. With a market cap of $2.75 billion and nearly 10 million shares shorted, the road ahead looks as grueling as a marathon in flip-flops.
So, what’s next for Under Armour? The tariff threat looms large, and Plank’s candid acknowledgment of its impact suggests tough choices ahead. Will the company pivot to offset these costs, perhaps by passing them to consumers or rethinking its supply chain? Can it reignite growth in North America, where competition from Nike and upstarts like Lululemon is fiercer than ever? For now, investors are left with more questions than answers, and Under Armour’s stock is paying the price.
Sources:
- MarketWatch: “Under Armour’s stock dives, as CEO doesn’t like what tariffs are doing to profits” (https://www.morningstar.com/news/marketwatch/20250808127/under-armours-stock-dives-as-ceo-doesnt-like-what-tariffs-are-doing-to-profits)
- Yahoo Finance: Under Armour, Inc. (UA) Stock Quote (https://finance.yahoo.com/quote/UA/)
- CNBC: Under Armour Inc (UAA) Stock Quote (https://www.cnbc.com/quotes/UAA)