Under Armour Shares Tumble 13% After Weak Forecast Citing Tariff, Inflation Pressures

Under Armour shares fell 13% in premarket trading on Friday, according to Reuters. The company forecast second-quarter revenue to decline 6% to 7%, steeper than analysts’ expected 2.9% drop. The sportswear maker cited inflation and uncertainty over Trump-era tariffs as key factors pressuring demand in North America. First-quarter revenue declined 4% to $1.13 billion, meeting estimates, while adjusted earnings per share of 2 cents missed the 3-cent forecast. Under Armour warned of a 340 to 360 basis point decline in gross margin this quarter, driven by tariff-related supply chain disruptions. Pricing and currency benefits may offset some losses. The company sources 45% of its merchandise from Vietnam and Indonesia and faces direct exposure to new tariffs of up to 20%.