Home / Business and Economy / Under Armour Profits Plunge as Turnaround Stalls
Under Armour Profits Plunge as Turnaround Stalls
9 Aug
Summary
- Revenue expected to fall 6-7%, more than double analysts' estimates
- Adjusted EPS could be as low as 2 cents, far below 26-cent forecast
- Tariffs, restructuring costs, and softer demand weigh on performance
In a major setback for its turnaround efforts, Under Armour has slashed its second-quarter forecast, sending its shares tumbling by as much as 21.5% on August 9th, 2025. The company now expects revenue to fall between 6% and 7%, more than double the decline analysts had anticipated.
The real gut punch, however, is the projected adjusted earnings per share (EPS), which could come in as low as 2 cents - a far cry from Wall Street's 26-cent estimate. This is not just a miss, but a wake-up call for investors who had been hoping for a successful comeback under the leadership of CEO Kevin Plank, who returned to the helm last year.
Management has pointed to multiple headwinds piling on at once, including softer consumer demand, pressure from U.S. tariffs, and a restructuring plan that's proving costlier than anticipated. The company expects tariffs alone to add around $100 million in expenses this year, while gross margins are set to shrink and full-year profits could be slashed by half.
Plank did not sugarcoat the situation, acknowledging that "None of this is ideal. We don't like this." The company is taking mitigation steps, such as tighter product selection and selective price hikes, but the runway to recovery is looking increasingly bumpy.
