Under Armour shares tumbled more than 22% in morning trading following the release of its latest quarterly earnings — a report that met sales expectations but fell short on profit, and more importantly, signaled a difficult road ahead.
For the fiscal second quarter, the athletic apparel company posted revenue of $1.13 billion, matching market forecasts but marking a 4.2% decline compared to the same period last year. Adjusted earnings came in at $0.02 per share, missing analysts’ projections.
The real blow came from its guidance for the upcoming quarter. Under Armour expects revenue of about $1.31 billion, roughly 4% below analyst expectations. The company also forecast adjusted earnings of just $0.02 per share at the midpoint — dramatically lower than the $0.26 per share Wall Street had been anticipating.
Market Reaction and Context
The steep share price drop underscores how sharply the market’s view of the company has shifted. While Under Armour has been no stranger to volatility — logging more than 20 daily moves of 5% or greater over the past year — such a large single-day decline is rare.
Just 10 days ago, the stock dipped nearly 4% after U.S. consumer confidence data raised fresh concerns about spending on discretionary goods. While the headline index rose in July, sub-index readings and survey details revealed softening intentions to buy big-ticket items, a troubling signal for companies dependent on non-essential purchases.
Stock Performance and Investor Perspective
Under Armour’s challenges are reflected in its share performance this year. The stock is down 36% year-to-date and currently trades at $5.18, a steep 53.5% below its 52-week high of $11.13 reached in November 2024.
For long-term investors, the pain has been significant. A $1,000 investment in the company five years ago would now be worth just $483, underscoring the depth of its market struggles.
With pressure from shifting consumer demand, intensifying competition, and underwhelming earnings guidance, Under Armour faces a pivotal period. The question now is whether it can rebound — or if further downside risk lies ahead.
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