Under Armour has lowered its full-year revenue outlook, projecting a steeper annual sales decline as soft consumer demand in its core North American market and mounting tariff pressures weigh on the sportswear maker’s turnaround efforts.
The downgrade followed a fiscal first-quarter performance in which revenue slipped, reinforcing concerns that the company’s multi-year restructuring has yet to translate into a sustained recovery.
North America, historically Under Armour’s largest and most important region, remained the primary drag on results, with the athletic apparel brand struggling to compete against larger rivals amid cautious spending by U.S. shoppers.
The company has been pursuing a broad overhaul under its leadership, including efforts to streamline product lines, reduce promotional discounting, and reposition the brand toward higher-margin premium offerings. Those measures have pressured near-term sales even as management argues they are necessary to restore long-term profitability.
Rising costs tied to import tariffs have added a fresh layer of uncertainty for apparel and footwear makers that rely heavily on overseas manufacturing, squeezing margins across the sector.
Under Armour is far from alone in confronting a challenging retail environment. The pressures echo those seen across the broader consumer landscape, with several major brands trimming their expectations this year. larger rival Nike cut its own guidance amid slowing sales, underscoring how even dominant players have not been immune to shifting consumer habits.
Retailers ranging from department chains to discount stores have flagged similar headwinds, citing hesitant shoppers and tariff-related cost inflation as recurring themes in recent earnings updates.
For Under Armour, the deeper forecast cut signals that a durable rebound may take longer than investors had hoped, with the brand still working to reclaim relevance among consumers and shore up its position in a crowded market.
The company is expected to continue emphasizing brand elevation and inventory discipline in the coming quarters as it navigates a demanding retail climate and monitors the evolving impact of trade policy on its supply chain.