MW Under Armour's stock tumbles as surging costs eat away at earnings

By Tomi Kilgore

Athletic gear maker's full-year profit outlook is banking on help from tariff refunds, and it's still below expectations

Under Armour's stock was sinking after losses were wider than expected and the outlook was below forecasts, as rising costs take a bite.

Shares of Under Armour took a dive in early Tuesday trading after the athletic-gear maker reported a wider fiscal fourth-quarter loss than Wall Street was expecting, while providing a downbeat profit outlook.

The company's results were hurt by higher costs, resulting mostly from higher tariffs and product-price inflation. Under Armour also booked higher costs related to its two-year-old restructuring plan than originally anticipated.

Following a "comprehensive review," the company has decided to extend the plan until at least the end of 2026, which will boost the expected cost to about $305 million, compared with previous expectations of $255 million.

The stock $(UAA)$ dropped 14.2% in premarket trading, putting it on track to open at the lowest price seen this year, and to suffer the biggest one-day loss in nine months.

Revenue for the quarter to March 31 fell 0.8% from a year ago to $1.171 billion, just above the average analyst estimate compiled by FactSet of $1.167 billion.

But gross margin, a measure of profitability on sales, dropped 2.2 percentage points to 45.5%, as the cost of goods sold jumped 7.8%.

The company also booked $36 million in restructuring-related charges during the quarter, leading to a net loss for the quarter of $43.4 million. Excluding the nonrecurring items, the adjusted per-share loss narrowed to 3 cents from 8 cents, but was wider than the FactSet loss consensus of 2 cents a share.

Looking ahead, Under Armour guided for fiscal 2027 adjusted earnings per share of 8 cents to 12 cents, well below the current FactSet consensus of 23 cents. The company said its guidance reflects external cost pressures, which are expected to be partially offset by tariff refunds.

Revenue is seen declining slightly in the coming year, while the current FactSet consensus for fiscal 2027 revenue implies an increase of 1.6%.

Under Armour's stock has rallied 21.9% in 2026 through Monday, while rival Nike shares $(NKE)$ have slid 33.5% and the S&P 500 index SPX has advanced 8.3%.

-Tomi Kilgore

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May 12, 2026 08:46 ET (12:46 GMT)

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