Under Armour (UAA) shares plunged 21.91% in Friday's pre-market trading session following the company's disappointing fiscal first-quarter results and a weak outlook for the second quarter. The sportswear maker's stock took a significant hit as it grapples with ongoing trade policy uncertainties and broader macroeconomic challenges.

For the first quarter ended June 30, Under Armour reported revenue of $1.134 billion, a 4% decline year-over-year, slightly missing analyst expectations. The company's adjusted earnings per share came in at $0.02, falling short of the $0.03 consensus estimate. More concerning to investors, however, was the company's forecast for the current quarter.

Under Armour expects second-quarter revenue to decline between 6% and 7%, significantly worse than the 2.9% drop analysts were anticipating. The company cited "ongoing uncertainty around trade policies and the broader macroeconomic environment" as key factors influencing its outlook. CEO Kevin Plank highlighted the impact of recently announced tariffs, estimating an additional $100 million in tariff-related costs for fiscal 2026.

The combination of these factors has led Under Armour to project that its profitability for the year will be about half of what it was last year, even with mitigation efforts and disciplined cost management. The company expects a Q2 loss of $0.07 to $0.08 per share, or adjusted earnings of just $0.01 to $0.02 per share, far below the $0.26 consensus estimate. This gloomy forecast, coupled with the decision not to provide full-year guidance, has sparked concerns among investors about the company's near-term prospects and its ability to navigate the challenging retail environment.