09:15 AM EDT, 08/08/2025 (MT Newswires) -- Under Armour ( UAA ) issued a fiscal second-quarter earnings outlook below market estimates on Friday amid ongoing macroeconomic uncertainties, while the sportswear maker's bottom line in the preceding three-month period fell short of expectations.

Adjusted earnings are anticipated to come in between $0.01 and $0.02 per share for the ongoing quarter, well below the current consensus on FactSet for non-GAAP EPS of $0.26. The stock fell 21% in the most recent premarket activity.

Revenue is projected to decrease by 6% to 7% in the quarter, including a low-double-digit decline in North America and a low-teens drop in Asia Pacific, according to the company. Sales are pegged to grow by a high single-digit percentage in Europe, the Middle East and Africa. The Street is looking for overall sales of $1.36 billion.

The guidance takes into account ongoing uncertainties related to trade policies and the broader macroeconomic backdrop, including potential impacts on demand and costs from tariffs, Under Armour ( UAA ) said. It forecasts its gross margin to decline by 340 to 360 basis points year over year in the second quarter, mainly due to tariff-driven supply chain headwinds and unfavorable channel mix.

US President Donald Trump's sweeping new tariffs on imports from several trading partners went into effect Thursday as the US leader's deadline for countries to strike deals expired.

For the three months through June, Under Armour's ( UAA ) adjusted EPS ticked up to $0.02 from $0.01, below the average analyst estimate on FactSet for $0.03. Revenue slipped 4% to $1.13 billion, matching the Street's view.

"We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation," Chief Executive Kevin Plank said in the earnings release. "Despite ongoing uncertainty, our brand is gaining strength and we're executing our strategic plan with clarity and confidence."

In North America, the sportswear maker's revenue slid 5.5% to $670.3 million while sales advanced 9.6% to $248.6 million in Europe, the Middle East and Africa. Asia Pacific and Latin America logged revenue declines of 10% and 15%, respectively.

Wholesale revenue fell 4.6% to $649.1 million, while direct-to-consumer moved down 3.5% to $463.5 million. Apparel revenue retreated 1.5% to $746.6 million, while footwear slumped 14% to $265.9 million. Accessories sales advanced 8.1% to $100.1 million.

Gross margin rose by 70 basis points to 48.2%, buoyed by foreign-exchange tailwinds, higher prices and product mix.

The company incurred $71 million of restructuring and impairment charges and $39 million in other expenses by the end of the first quarter, as part of a restructuring plan launched in May 2024. The plan is estimated to cost between $140 million and $160 million.