Under Armour Shares Plunge on Weak Q1 Sales, Tariff Pressures

Under Armour reported first-quarter fiscal 2026 revenue of $1.13 billion, a 4% decline year-over-year, missing Wall Street estimates as both North American and international sales fell. The company posted a GAAP net loss but adjusted net income slightly improved, with gross margin rising due to pricing, foreign exchange, and product mix benefits, partially offset by supply chain costs and unfavorable channel mix. Despite some growth in EMEA and accessories, significant declines in footwear sales and eCommerce revenue weighed on results. Under Armour forecasted a second-quarter revenue decline of 6-7%, well below analyst expectations, and warned of margin pressure linked to tariffs on goods from Vietnam and Indonesia, which constitute a substantial portion of its merchandise volume. The company attributed its weak outlook to ongoing uncertainty around trade policies and the broader macroeconomic environment, including tariff-related supply chain disruptions. This cautious guidance led to a sharp drop in Under Armour's stock price in premarket trading.