Sports apparel and footwear brand Under Armour has announced plans to raise prices on selected products in response to potential new tariffs on imports from Asia, Reuters reports.
The move follows a smaller-than-expected revenue decline for the quarter ended March 31, with sales falling 11% to $1.18 billion, slightly better than analysts’ forecast of a 12.4% drop.
The company said it would target price increases and further diversify its supply chain to reduce exposure to higher levies. It currently sources 30% of its merchandise from Vietnam, 20% from Jordan, and 15% from Indonesia. Planned U.S. tariffs of 46% on Vietnamese imports and 32% on Indonesian goods could impact margins unless a new trade agreement is reached.
Chief financial officer David Bergman said these adjustments are part of Under Armour’s ongoing turnaround strategy, which includes reducing discounts, trimming inventory, and focusing on full-price sales. Gross margins improved by 170 basis points in the quarter, reaching 46.7%.
Under Armour did not issue an annual forecast but expects first-quarter revenue to decline between 4% and 5%.
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