Maryland, U.S.: Sportswear giant Under Armour (UAA.N) projected annual revenue and profit below Wall Street expectations on Thursday, citing a combination of declining consumer demand and rising tariff costs. The company also announced a change in its chief financial officer, signaling a shift in its financial leadership strategy.

Shares of Under Armour were slightly lower in premarket trading following the announcement. Reza Taleghani will assume the role of CFO in February 2026, succeeding David Bergman, who will remain with the company through the first quarter of fiscal 2027.

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Financial Outlook and Performance

Under Armour now anticipates full-year 2026 revenue to decline 4% to 5%, falling slightly below analysts’ average estimate of a 4% decrease, according to data compiled by LSEG.

The company also projected annual adjusted earnings per share (EPS) of 3 to 5 cents, compared with analysts’ consensus of 6 cents per share.

For the third quarter, Under Armour reported revenue of $1.33 billion, a 5% decrease from the same period last year, slightly above the analysts’ average estimate of $1.31 billion.

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Factors Affecting Growth

Under Armour has been undergoing a business reset under founder Kevin Plank, who returned as CEO in March following two years of declining sales.

The company cited weak consumer spending in the U.S., compounded by fluctuating tariffs under the Trump administration affecting imported goods, as a key factor weighing on its growth. Rising operational costs and a competitive retail landscape have further pressured revenue and profitability.

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CFO Transition and Strategic Focus

The upcoming CFO transition marks a significant step in Under Armour’s effort to stabilize financial operations and improve profitability. Reza Taleghani’s appointment is expected to support the company’s long-term strategy of optimizing costs and navigating global trade challenges.

David Bergman will provide continuity during the transition, remaining with the company through the early part of fiscal 2027 to ensure a smooth handover and maintain investor confidence.

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Looking Ahead

Under Armour’s outlook reflects the broader challenges facing U.S. retailers, including tariff impacts, supply chain pressures, and shifting consumer demand. The company’s management aims to rebuild revenue growth and profitability while managing operational costs and navigating geopolitical and economic uncertainties.

Industry analysts will be closely watching Under Armour’s performance in the coming quarters, particularly as it implements its new financial strategy and addresses global trade impacts.