Under Armour's 2026 Tariff Hit Threatens Turnaround Momentum

Core Viewpoint - Under Armour, Inc. is undergoing a brand and product reset due to soft consumer demand and is facing significant tariff-related cost pressures in fiscal 2026, which may adversely impact earnings [1][2]. Group 1: Company Challenges - The company is implementing a product overhaul in response to weak consumer confidence, increased competition, and rising tariff-driven costs [2]. - Under Armour has reduced promotions, streamlined SKUs, cut expenses, and hired new talent, but demand has not significantly improved [2]. Group 2: Financial Projections - Analyst Cristina Fernández estimates an EPS of 2 cents for the second quarter, aligning with FactSet consensus and guidance of 1 to 2 cents, with projected sales contracting by 6.5% [4]. - For fiscal 2026, Fernández forecasts an EPS of 6 cents, slightly above the 5-cent FactSet view, with revenue expected to decline by 4.3% [4]. Group 3: Upcoming Focus Areas - The upcoming second-quarter call is expected to address direct-to-consumer and wholesale demand, updated net tariff cost estimates, and consumer responses to new products [3]. - Additional details sought include promotional levels, holiday plans, wholesale order books for spring and summer 2026, and guidance for the third quarter with updated commentary on fiscal 2026 [3].