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Luke Kawa8/8/25

Under Armour tanks on disappointing outlook, warns that recent tariffs boost its costs by $100 million while crimping demand

There’s no shield protecting Under Armour this morning.

Shares of the athletic apparel company are tumbling Friday morning after the company reported results for its fiscal first quarter of 2026 that were effectively in line with expectations, but issued a gloomy outlook for the current quarter. The stock is down more than 20% in early trading, on track for its biggest daily drop since May 2022.

For the three months ending June 30, Under Armour reported adjusted diluted earnings per share of $0.02, a penny below what analysts had anticipated, on revenues of $1.134 billion, a smidge ahead of the consensus call.

However, for Q2 (the current quarter), management way undershot what the Street was looking for. The guidance for adjusted diluted EPS from $0.01 to $0.02 is far short of the consensus estimate of $0.26, per analysts polled by Bloomberg. And on the top line, Under Armour said revenues would come in between $1.3 billion and $1.315 billion, a decline of 6% to 7% from the same quarter a year ago, while analysts anticipated $1.36 billion.

Recently announced tariffs will add another $100 million in costs this fiscal year, CEO Kevin Plank said on the conference call following the report, and result in “softer-than-expected demand.”

The company has yet to complete the restructuring plan it instituted in May 2024, and anticipates an additional $30 million to $50 million in charges tied to this initiative through the end of this fiscal year.

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Nike pops on Q1 earnings beat and surprise revenue jump

Nike topped first-quarter estimates after the bell Tuesday.

Adjusted earnings per share came in at $0.49, nearly double the $0.27 expected by Wall Street. Revenue rose to $11.7 billion, also beating analyst forecasts of $11 billion. Wholesale revenues rose 7% to $6.8 billion.

On Friday, the sneaker giant rolled out its first collaboration with Kim Kardashian’s Skims, betting that the brand’s popularity and star power will help expand its female customer base.

Ahead of earnings, Nike shares were down over 5% year to date.

Tasha Matsumoto, Luke Kawa

Stocks end strong quarter higher as investors shrug off an imminent government shutdown

The S&P 500 ticked up 0.4%, the Nasdaq moved up 0.3%, and the Russell 2000 eked out a 0.1% gain.

Sunset Bull

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Matt Phillips10h

Betting stocks slammed on growing pressure from prediction markets

The duopoly that dominates the US online sports betting business — DraftKings and FanDuel parent Flutter Entertainment — dove Tuesday after prediction markets company Kalshi quietly introduced a new feature mimicking the popular parlay-style sports bets that have been an important differentiator for the sportsbooks from fast-growing prediction markets.

Robinhood Markets, which has partnered with prediction markets platform Kalshi to offer event contracts to its users, has surged to record highs in recent days on signs that its prediction markets business is gaining traction as the NFL season unfolds.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Market analysts have noted that prediction markets — which in the US are regulated as financial products by the CFTC — have some significant regulatory advantages compared to non-prediction market sports betting activity, which typically operates under state gaming regulators.

“Prediction markets like Kalshi, which is available nationwide to anyone over 18, are... increasingly an alternative to traditional online sportsbooks like DraftKings, which is generally available 21 and up in about half the country,” analyst Edwin Dorsey wrote earlier this month on his newsletter The Bear Cave, which spotlights potential short positions on some stocks.

Separately, Flutter is also under some idiosyncratic pressure amid reports that Rachel Reeves, the UK’s chancellor of the exchequer, is open to raising taxes on the country’s gambling companies in the upcoming budget.

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Max Knoblauch11h

Nio climbs following a more than 60% jump in weekly registrations in China

A host of new Model Y competitors appear to be paying off for Chinese EV maker Nio.

Shares of the company rose more than 5% in Tuesday morning trading, following reports that the company last week logged a record 10,800 vehicle insurance registrations in China, a common proxy for vehicle deliveries.

The figure, which would represent a 62% jump in registrations week over week, was reportedly shared by a Nio executive on Chinese social media. Nio is said to have delivered more than 2,000 of its new three-row electric SUV, the ES8, and 2,600 Onvo L90s (another SUV) in the week ended September 28.

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J. Edward Moreno11h

Pfizer reaches deal with Trump admin on drug pricing

Pfizer rose Tuesday after it was announced that the drugmaker reached a deal with the Trump administration to lower its prices in the US.

Pfizer will sell its drugs through Medicaid at lower prices, according to the White House. In its own press release, Pfizer said it has agreed to take steps to ensure Americans receive “comparable drug prices to those available in other developed countries” and will price “newly launched medicines at parity with other key developed markets.”

Pfizer said it would participate in the administration’s direct-to-consumer platform dubbed “TrumpRx.” Many of the company’s drugs will be available on TrumpRx.gov (the website does not appear to be active yet) at “at savings that will range as high as 85% and on average 50%.”

The specific terms of the agreement are confidential, Pfizer said. President Trump signed an executive order in May demanding drugmakers give the US the best prices on medications, and the deadline to comply with that was Monday.

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