Here is a detailed article about Under Armour’s tariff concerns, based on the information from Just Style, presented in a polite tone:
Under Armour Highlights Potential $100 Million Impact from Anticipated Tariffs
Baltimore, MD – Under Armour, a prominent global leader in sportswear and athletic apparel, has issued a cautionary note regarding the potential financial impact of anticipated tariffs, forecasting an additional cost of up to $100 million. This development, reported by Just Style on August 11, 2025, signals a significant challenge for the company as it navigates evolving trade policies and their implications for its global supply chain and consumer pricing.
The company’s leadership has indicated that these tariff increases, should they be fully implemented as projected, could represent a substantial addition to their operating expenses for the fiscal year 2026. While the specifics of the tariff structure and the exact countries or goods affected were not detailed in the initial report, the magnitude of the potential cost underscores the sensitivity of Under Armour’s business model to international trade regulations.
Under Armour has historically relied on a diversified global manufacturing base to produce its wide range of apparel and footwear. Fluctuations in trade policies, such as the introduction of new or increased tariffs, can directly impact the cost of goods sold (COGS). This, in turn, can exert pressure on profit margins or necessitate adjustments in pricing strategies.
In response to such potential economic shifts, companies like Under Armour typically explore a variety of strategic options. These may include efforts to optimize sourcing locations, engage in discussions with trade authorities, and, where feasible, pass on a portion of the increased costs to consumers. However, the latter approach requires careful consideration to avoid negatively impacting demand, especially in a competitive market.
The advisory from Under Armour serves as an important signal to investors and industry observers about the ongoing complexities of global commerce. As businesses continue to adapt to a dynamic geopolitical landscape, proactive communication regarding potential financial headwinds becomes increasingly valuable. The company’s candidness in highlighting these tariff concerns allows for a clearer understanding of the challenges it anticipates and its preparedness to address them.
Further details regarding Under Armour’s mitigation strategies and the specific nature of the tariffs are expected to be disclosed in subsequent financial reports and investor communications. The company remains committed to its long-term growth objectives while diligently managing the economic factors that influence its operations.
Under Armour warns of $100m in additional tariff costs
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Just Style published ‘Under Armour warns of $100m in additional tariff costs’ at 2025-08-11 10:48. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.