Under Armour forecast full-year income and profit below Wall Street estimates on Thursday because the sportswear maker faces declining demand and better tariff-related prices.
The Maryland-based retailer has been trying to reset its enterprise underneath founder Kevin Plank, who returned as CEO in March after gross sales declined over the past two years.
However, cautious shopper spending amid larger costs from the Trump administration’s import tariffs has weighed on the corporate.
Under Armour additionally mentioned chief monetary officer David Bergman would step down and get replaced by Reza Taleghani, CFO of American Tourister proprietor Samsonite.
“Eighteen months into its turnaround plan, Under Armour appears to be struggling to navigate both a challenging external environment and internal missteps,” mentioned eMarketer analyst Sky Canaves.
As of May, about 30 % of Under Armour’s merchandise was sourced from Vietnam, exposing it to Trump’s 20 % tariff on Vietnamese items and a 40 % obligation on trans-shipped objects by the nation. The firm has mentioned it expects $100 million in incremental tariff prices this yr.
Under Armour, which had not issued an annual forecast since May, mentioned it now expects annual income to say no by 4 % to five %, a sharper drop than analysts’ common estimate of a 4 % lower, in keeping with LSEG information.
It additionally expects the current-quarter income to say no between 6 % and seven %, in comparison with estimates of a 4.1 % fall.
The firm forecast adjusted per share profit between 3 cents and 5 cents, below the common expectation of 6 cents.
Second-quarter income fell 5 % to $1.33 billion, barely above the estimate of $1.31 billion. Adjusted profit of 4 cents per share beat expectations of two cents.
Shares of the corporate, down about 44 % this yr, fell about 2 % in early buying and selling.
By Sanskriti Shekhar
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Under Armour Forecasts Downbeat Second-Quarter Sales
The Maryland-based sportswear maker has struggled to drive up demand up to now two years, with efforts to revive the enterprise having hit extra roadblocks in latest months as a result of Trump administration’s shifting tariff insurance policies.