Under Armour is preparing to raise prices on select products in a bid to offset potential tariff pressures, following stronger-than-expected fourth-quarter results that signaled progress in its ongoing turnaround strategy.
Despite an 11% year-over-year drop in quarterly revenue to $1.18 billion, the figure narrowly beat analyst estimates of $1.17 billion, underscoring the early success of the company’s recalibrated focus on premium offerings, leaner inventory, and disciplined discounting. Gross margins rose 170 basis points to 46.7%, buoyed by improved product assortment and a pullback from aggressive promotions in off-price channels.
CFO David Bergman, speaking on the earnings call, confirmed that Under Armour is implementing “targeted price increases” and accelerating diversification of its supply chain, particularly toward countries with more favorable trade terms. Presently, the company sources approximately 30% of its goods from Vietnam, 20% from Jordan, and 15% from Indonesia—regions now facing heightened U.S. tariffs under recent trade proposals from the Trump administration. Tariffs of up to 46% on Vietnamese imports and 32% on Indonesian goods are slated to take effect in July, unless new trade agreements are reached.
“We’re being proactive, both in how we price and where we produce,” Bergman noted. “Strategic sourcing and a focus on high-quality, full-price sales remain core to our path forward.”
Analysts warn that the real test of Under Armour’s resilience will come later in the year. EMarketer’s Sky Canaves said the company’s pivot away from volume-driven sales toward a premium model is “still in progress,” with the second half of 2025 likely to provide a clearer picture of traction.
Looking ahead, Under Armour expects a 4% to 5% dip in first-quarter revenue—steeper than the 1.9% decline projected by analysts polled by LSEG. However, some industry experts view the company’s shift in brand positioning as a long-term strength.
“In a price-sensitive environment, leaning into more premium, less promotional product lines can align Under Armour with a steadier, more resilient consumer segment,” said Drake MacFarlane, analyst at MScience.
The company declined to provide full-year guidance, citing ongoing global trade volatility and inflationary headwinds.