Under Armour shares slid more than 15% in premarket trading Friday after the athletic apparel company posted weaker-than-expected earnings and warned of further margin pressure tied to tariff-related supply chain costs.

The Baltimore-based company reported fiscal first-quarter revenue fell 4% from a year earlier to $1.1 billion, missing Wall Street expectations. North America sales, its largest regional segment, declined 5% to $670 million, while international revenue dipped 1% to $467 million. Regional performance was mixed: sales grew 10% in EMEA, but fell 10% in Asia-Pacific and 15% in Latin America.

By distribution channel, wholesale revenue dropped 5% to $649 million, and direct-to-consumer sales declined 3% to $463 million. E-commerce revenue tumbled 12%, although sales at owned retail stores rose slightly. Non-GAAP earnings per share came in at $0.02, in line with last year but short of the $0.03 consensus estimate.

The product mix showed further strain. Apparel revenue fell 1% to $747 million, while footwear sales plummeted 14% to $266 million. Accessories bucked the trend, rising 8% to $100 million. Gross margin improved 70 basis points to 48.2%, driven by pricing, foreign exchange tailwinds, and favourable mix—though these gains were partially offset by higher supply chain costs and less profitable sales channels.

Looking ahead, Under Armour forecast second-quarter revenue to decline between 6% and 7%, with North America expected to fall by low double digits. The company guided for earnings per share of $0.01 to $0.02, far below analyst expectations of $0.12. Executives also flagged growing pressure on margins, citing potential tariff impacts and continued channel mix challenges.

Investors reacted swiftly to the downbeat report, sending shares of both Under Armour’s Class A (UAA) and Class C (UA) stock sharply lower in early trading.

The post Under Armour Shares Tumble on Weak Sales Outlook, Tariff Warning appeared first on citybiz.

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