r cent) but steeper drops in Asia-Pacific (-10 per cent) and Latin America (-15 per cent). By category, apparel revenue decreased 1 per cent to $747 million, footwear revenue declined 14 per cent to $266 million, while accessories revenue increased 8 per cent to $100 million. The company has 2000 mono-branded stores in nearly 150 countries, but the bulk of production remaining concentrated in Asia has put the company in a vulnerable position.  Tariffs: A $100 million headwind The Trump administration’s new tariffs on imported goods have created a new cost shock for Under Armour. Vietnam and Indonesia, which will get charged 20 per cent and 19 per cent respectively, accounted for roughly 30 per cent and 15 per cent, of the company’s total merchandise volume as of May. That concentration means the company has limited near-term flexibility to shift production without incurring additional costs or operational disruptions. “We estimate approximately $100 million in additional tariff-related costs, along with softer-than-expected demand in fiscal 2026,” Under Armour’s president and CEO Kevin Plank said, adding that, with mitigation efforts and disciplined management, the company’s profitability is projected to be about half of what it was last year.  While the company is exploring alternative sourcing, passing some costs on to consumers and sharing the burden with suppliers, most of these benefits will not materialise until fiscal 2027, given the long lead times in apparel manufacturing.  The company estimated revenue to decline 6 to 7 per cent next quarter, including a low-double-digit percentage decrease in North America, high-single-digit percentage growth in EMEA, and a low-teens percentage decline in the Asia-Pacific region. Operating income is projected to range from breakeven to a $10 million loss, compared with a profit of $3 million in the first quarter. Plank’s second act  Sixteen months into his second tenure as CEO, Plank has been positioning Under Armour’s transformation less as a quick turnaround and more as a rebuild of brand equity and pricing power. The strategy, which Plank called ‘Brand First’, has led to a 25 per cent reduction in SKUs, a 30 per cent cut in material types this year and the consolidation of the design language around clearer product stories. Plank’s playbook rests on two main levers.  The first is to spotlight what he calls “pinnacle-defining” products, which is gear that only Under Armour could make, sitting at the intersection of sports authenticity, innovation and style. Examples range from the HeatGear base layer to the Velociti Elite 3 running shoe and the No Weigh Backpack. These products command higher price points, serving both as revenue drivers and brand beacons. The second lever is to apply a premiumisation mindset to the company’s top 10 volume drivers in apparel, footwear and accessories.  “This two-lever strategy also has the benefit of being the same play we are and would run to help mitigate tariff impacts,” Plank said in the company earnings call. “While we cannot affect holistically in the short-term, we should see this benefit coming to our P&L in coming seasons.” However, according to Neil Saunders, MD at GlobalData, great storytelling and a cohesive brand image remain a long way off, especially in the US.  “In many stores like Dick’s, Under Armour lacks oomph. In others, like Kohl’s, it just looks cheap,” he said.   Saunders expects the brand reset will take longer than normal to show results since it’s occurring during an especially challenging period. He added that the upcoming fiscal year will likely be another write-off, as restructuring costs combined with tariff and supply chain pressures will erode the bottom line.