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.