May 12 (Reuters) - Under Armour forecast another annual revenue decline and expects profit well below estimates on Tuesday, as weakness in its key North American market weighs on CEO Kevin Plank's turnaround efforts.
Shares of the sportswear maker, which has reported sales declines for three straight years, fell about 14% in premarket trading.
Founder Plank, who returned as CEO in 2024, has zeroed in on trimming about 25% of the company's product lines and shifting to higher-priced items in categories
such as training, running and team sports.
"We're streamlining our operating model and increasing accountability in execution," Plank said in a statement.
Under Armour expects annual adjusted operating income to be in the range of $140 million to $160 million, which includes about $70 million in benefits from potential tariff refunds, along with a roughly $35 million hit from the conflict in the Middle East.
The company also projected annual adjusted profit per share of between 8 cents and 12 cents, compared with analysts' average expectation of 23 cents.
The apparel retailer expects revenue for its fiscal year 2027 to fall slightly, compared with analysts' average expectation of a 1.6% rise to $5.05 billion, according to data compiled by LSEG.
Annual sales in North America are projected to decline by a low single-digit, Under Armour said.
The downbeat report adds to concerns about the challenges the company faces to stabilize its core business in a market where shoppers have grown more selective and competition from brands such as Nike, Lululemon, Adidas and Puma has intensified.
In the quarter ended March 31, Under Armour posted a wider-than-expected loss, while its quarterly revenue fell 1% to $1.17 billion from a year earlier and was in line with estimates.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Sriraj Kalluvila)
