Under Armour stock tumbles after costs widen loss and guidance disappoints

Earnings hit and stock reaction

Shares of Under Armour Inc. plunged on Tuesday after the Baltimore-based athletic-apparel maker posted a wider-than-expected fiscal fourth-quarter loss and issued a downbeat profit outlook. The stock fell about 19.7% in morning trading, marking its largest one-day drop since a 23.8% plunge on May 6, 2022, and pushed the shares into negative territory for the year.

Revenue for the quarter ended March 31 slipped 0.8% year over year to $1.171 billion, narrowly above the average Wall Street estimate of $1.167 billion compiled by FactSet. Profitability, however, deteriorated: gross margin dropped 2.2 percentage points to 45.5% as cost of goods sold rose 7.8%.

The company recorded $36 million in restructuring-related charges in the quarter and reported a net loss of $43.4 million. On an adjusted basisexcluding nonrecurring itemsper-share losses narrowed to 3 cents from a loss of 8 cents a year earlier, but that still came in slightly worse than the FactSet consensus loss of 2 cents per share.

Under Armour said the results were pressured by rising costs, driven largely by higher tariffs and product-price inflation. After a "comprehensive review," the company extended its two-year-old restructuring program through at least the end of 2026 and raised the expected total cost of the plan to about $305 million, up from prior expectations of $255 million.

Outlook and implications

Management guided fiscal 2027 adjusted earnings per share to a range of 8 cents to 12 centswell below the current FactSet consensus of 23 cents. The company said the outlook incorporates continued external cost pressures that it expects will be partially offset by tariff refunds. Revenue is forecast to decline slightly in the coming year, while the FactSet consensus for fiscal 2027 implies a 1.6% increase.

Investors reacted sharply to the combination of higher costs, additional restructuring charges and a conservative earnings guide. With Tuesdays slide, Under Armours stock was down about 2.1% year to date. By comparison, the S&P 500 has gained about 7.9% so far in 2026, and shares of rival Nike were modestly lower on the day. The divergence highlights how company-specific cost pressurestariffs, product inflation and restructuring expensecan swing sentiment even as broader markets advance.

For Under Armour, the near-term path to restoring margins will depend on the timing and magnitude of tariff refunds, cost-control progress under the extended restructuring plan, and the companys ability to pass through or absorb product-cost inflation without further eroding demand. Until those dynamics become clearer, investors are likely to remain sensitive to quarterly results and any incremental detail the company provides around its restructuring and tariff outlook.