Under Armour Stock Crashes: Retailer Warns of 50% Profit Freefall in 2025

Under Armour just face-planted on Wall Street—hard. The sportswear giant's stock nosedived after dropping a brutal profit bombshell.

Half its earnings? Gone. Poof. Like a crypto trader's leverage position during a flash crash.

What went wrong? Let's break it down.

The Growth Paradox

Revenue keeps climbing, but margins are getting squeezed tighter than a Bitcoin maxi's 'number go up' mantra. Classic case of selling more but keeping less.

The Guidance Gut Punch

That 50% profit warning wasn't just bad—it was 'rug pull during a bull market' bad. Analysts are now scrambling like DeFi degens chasing the next shitcoin.

Silver Lining Playbook

Inventory's leaner. Direct sales are up. But let's be real—when Wall Street smells blood, even Warren Buffett memes won't stop the sell-off.

Bottom line: In today's market, missing targets gets you treated like an altcoin—harshly and without mercy. Maybe they should've invested in tokenized hoodies instead.

Key Takeaways

• Under Armour shares were recently down over 20% after the retailer reported first-quarter earnings that missed expectations and issued a downbeat forecast.
• The athletic apparel company's profit this fiscal year could be half of what it was a year ago, CFO David Bergman said.
• Tariffs and soft demand for shoes are weighing on the company and may draw out its turnaround, he said.

Under Armour (UAA) shares tumbled Friday after the retailer said it WOULD be half as profitable this fiscal year as it was last year.

The stock was down over 20% in recent trading. It's lost more than a third of its value since the year began.

Under Armour on Friday reported a $2.6 million loss for the fiscal first quarter, rather than the $600,000 profit analysts called for. Its earnings lagged expectations even after they were adjusted for restructuring costs and legal activity.

The athletic apparel company cautioned that its finances will likely get worse before they get better—profits for the full year could be half of what they were a year ago, CFO David Bergman said.

"With the tariff environment and how that's impacting demand in the overall market, it's going to be tougher to make more progress this year," Bergman said, according to a transcript made available by AlphaSense. "But I think we do have increased discipline."

The Baltimore-based company previously projected a "modest" revenue dip in fiscal 2026 as it sought to finesse its product line and reduce promotions, Bergman said. However, the turnaround will likely take longer due to sluggish demand for athletic apparel, particularly shoes, and tariffs, he said.

The company is exploring alternative suppliers and may raise prices, but such moves wouldn't show up in its finances until next fiscal year, Bergman said.

Under Armour reported $8.6 million in adjusted income on $1.1 billion in revenue for the quarter ended June 30. Analysts were looking for $10.8 million in adjusted earnings and a similar amount in revenue, according to consensus estimates compiled by Visible Alpha.