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4w ago

Under Armour Beats Q2, Cuts FY26 Outlook as Tariffs Weigh, Announces CFO Transition

New U.S. tariffs tied to Vietnam sourcing are set to add about $100 million, squeezing margins.

People walk by an Under Armour store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly
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Overview

  • Under Armour posted Q2 adjusted EPS of 4 cents on revenue of $1.33 billion, topping estimates despite a 5% sales decline.
  • Full-year guidance now calls for revenue down 4% to 5% and adjusted EPS of 3 to 5 cents, with gross margin expected to fall 190 to 210 basis points largely from higher U.S. duties.
  • The company has estimated roughly $100 million in incremental tariff costs this year, with about 30% of goods sourced from Vietnam.
  • North America revenue fell 8% as international rose 2%, including EMEA up 12% and Latin America up 15%, while Asia-Pacific declined 14% and e-commerce dropped 8%.
  • Reza Taleghani will become CFO in February 2026 as David Bergman remains through Q1 FY2027 for the transition, and shares were down about 2% premarket and roughly 44% year to date.