(Reuters) -Under Armour forecast annual revenue and profit below Wall Street estimates on Thursday as the sportswear maker faces a decline in demand and rising tariff costs.
Its shares, which have fallen
about 44% so far this year, were down about 2% in premarket trading.
The company named Reza Taleghani as its finance head after David Bergman stepped down from the role. Taleghani will take charge as CFO in February 2026, while Bergman will remain with the company through the first quarter of fiscal 2027, Under Armour said.
The Maryland-based retailer has been attempting to reset its business under founder Kevin Plank, who returned as CEO in March after sales declined over the last two years.
However, weak consumer spending in the U.S., driven by President Donald Trump's fluctuating tariffs and their impact on imported goods, weighed on the company.
As of May, Under Armour was sourcing about 30% of its overall merchandise volume from Vietnam. It therefore faces a direct risk from Trump's 20% tariffs on goods from Vietnam and a 40% duty on goods trans-shipped through the country.
It said in August it expects $100 million in incremental tariff-related costs for the year.
Under Armour, which had refrained from providing an annual forecast since May, now expects FY2026 revenue to decrease between 4% and 5%, largely below analysts' average estimate of a 4% decrease, according to data compiled by LSEG.
It sees annual adjusted profit per share between 3 cents and 5 cents, compared with analysts' average estimate of 6 cents per share.
Revenue for the third quarter fell 5% to $1.33 billion, compared with analysts' average estimate of $1.31 billion. Adjusted profit per share of 4 cents surpassed analysts' estimate of a profit of 2 cents.
North American revenue declined 8%, but revenue in its international segment grew 2% on strong demand in Europe and Latin America.
(Reporting by Sanskriti Shekhar and Neil J Kanatt in Bengaluru; Editing by Pooja Desai)
