Under Armour Widens Full-Year Loss Outlook Over Rising Import Tariffs
Under Armour widened its fiscal-year operating loss outlook, citing higher U.S. tariffs on Chinese-made apparel that will reduce gross margins. Management warned that the tariff-driven cost increases will continue to pressure profitability in the coming quarters.
1. Loss Guidance Revision
Under Armour has revised its fiscal 2026 operating loss guidance upward to reflect elevated input costs. The updated outlook now anticipates a deeper loss range than previously forecast, signaling larger-than-expected headwinds for the brand.
2. Tariff-Driven Cost Pressures
The company identified U.S. import duties on Chinese-made athletic apparel, currently levied at up to 25%, as the primary driver of cost increases. These tariffs have eroded gross margins by several percentage points and stretched working capital.
3. Profitability Outlook
Looking ahead, management warned that quarterly results may remain under pressure as the tariff environment persists and supply-chain adjustments take effect. Under Armour is evaluating pricing and sourcing strategies to mitigate ongoing margin challenges.