Under Armour announces CFO change, reports sales and profit forecasts below estimates

Under Armour forecast full-year revenue and profit below Wall Street estimates on Thursday as the sportswear maker faces declining demand and higher tariff-related costs.

The Baltimore-based retailer has been attempting to reset its business under founder Kevin Plank, who returned as CEO in March after sales declined over the past two years.

However, cautious consumer spending amid higher prices from the Trump administration‘s import tariffs has weighed on the company.

Under Armour also said Chief Financial Officer David Bergman would step down and be replaced by Reza Taleghani, CFO of American Tourister owner Samsonite.

“Eighteen months into its turnaround plan, Under Armour appears to be struggling to navigate both a challenging external environment and internal missteps,” eMarketer analyst Sky Canaves said.

As of May, about 30% of Under Armour’s merchandise was sourced from Vietnam, exposing it to Trump’s 20% tariff on Vietnamese goods and a 40% duty on trans-shipped items through the country. The company has said it expects $100 million in incremental tariff costs this year.

Under Armour, which had not issued an annual forecast since May, said it now expects annual revenue to decline by 4% to 5%, a sharper drop than analysts’ average estimate of a 4% decrease, according to LSEG data.

It also expects the current-quarter revenue to decline between 6% and 7%, compared to estimates of a 4.1% fall.

The company forecast adjusted per share profit between 3 cents and 5 cents, below the average expectation of 6 cents.

Second-quarter revenue fell 5% to $1.33 billion, slightly above the estimate of $1.31 billion. Adjusted profit of 4 cents per share beat expectations of 2 cents.

Shares of the company, down about 44% this year, fell about 2% in early trading.

Reporting by Sanskriti Shekhar and Neil J Kanatt in Bengaluru; Editing by Pooja Desai.