Stock Track | Under Armour Plummets 16.50% on Downbeat Annual Forecasts and Cost Pressures

Stock Track
May 12

Under Armour Class A shares plummeted 16.50% intraday on Tuesday, following a significant pre-market decline, after the company reported quarterly results and issued a disappointing outlook for the coming fiscal year.

The sharp drop was driven by the company's fiscal 2027 adjusted earnings per share guidance of $0.08 to $0.12, which fell well below the FactSet consensus estimate of $0.23. Under Armour also reported a wider-than-expected fourth-quarter adjusted loss of $0.03 per share, missing the estimate of a $0.02 loss.

Furthermore, the company expects fiscal 2027 revenue to decline slightly year-over-year, contrasting with analyst expectations for a 1.6% increase. The downbeat outlook reflects ongoing challenges, including a 7% decline in North America revenue last quarter, gross margin pressure from higher tariffs and product costs, and headwinds of approximately $35 million related to the conflict in the Middle East. The company also announced an extension of its restructuring plan, raising total expected program costs to approximately $305 million.

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