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.
