Under Armour expects tariffs to slash its profitability by roughly 50% this year, Chief Executive Kevin Plank told analysts Friday, as the sportswear maker braces for an additional $100 million in costs tied to trade levies.

The Baltimore-based company is moving to counter the hit by raising prices and streamlining its product lineup—a strategy Plank said aligns with a broader push to reposition the brand at a more premium level. The price of its signature tech T-shirt has climbed to $25, with further increases under consideration. The company is also selling a $45 hat, nearly double the price of most comparable products in the market.

The tariff pressure comes on top of an ongoing sales slide. Revenue fell 4% in the first quarter to $1.1 billion and is projected to decline another 6% to 7% in the second quarter. Restructuring charges continue to weigh on earnings as the company executes a turnaround plan aimed at improving operational efficiency.

Some progress is visible. Gross margins improved by 70 basis points in the latest quarter, aided by a stronger product mix and pricing discipline. Neil Saunders, managing director at GlobalData, said the pace of sales decline has moderated from double-digit drops, though sales remain more than 14% below 2022 levels.

Saunders said Under Armour’s tighter assortments and higher-quality offerings are positive signs, but the brand still struggles to stand out in a crowded market. At some third-party retailers, he noted, Under Armour risks being perceived as a commodity product compared with trendier names like Hoka and On.

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