Shoe Stocks Plummet Amid Tariff Worries and Lowered Earnings Guidance

Under Armour's Q1 report sent shares down 17.2% after CEO Kevin Plank said the company expects an additional $100 million in costs from tariffs, making its turnaround efforts harder. Allbirds plummeted 29.3% after narrowing its net loss but seeing a 23.1% revenue decline. Both companies lowered guidance, and other shoe firms also saw declines.

Under Armour Inc. (NYSE: UA) and Allbirds Inc. (NASDAQ: BIRD) both reported Q1 earnings, revealing the challenges posed by tariffs and shifting consumer demand. Under Armour's shares fell 17.2% after CEO Kevin Plank announced an additional $100 million in tariff-related costs, making its turnaround efforts more difficult [1]. Allbirds' stock plummeted 29.3% despite narrowing its net loss, with a 23.1% revenue decline [2].

Under Armour's Q1 Results

Under Armour reported a 4% revenue decline to $1.1 billion, with footwear sales down 14% to $266 million and apparel sales decreasing 1% to $747 million. The company expects a 6% to 7% revenue decline in the second quarter and a 340 to 360 basis points decline in quarterly gross margin due to potential tariff-related supply chain snags. CEO Kevin Plank acknowledged the company's struggles to drive up demand and profitability over the past two years, despite efforts to reboot the business [1].

Allbirds' Q1 Results

Allbirds reported a 23.1% revenue decline to $39.7 million, with a net loss of $15.5 million. The company narrowed its net loss from the year-ago net loss of $19.1 million but saw a significant revenue decline. Allbirds lowered its full-year 2025 revenue outlook to between $165 million to $180 million, down from the previous guidance of $175 million to $195 million [2].

Impact on Other Shoe Firms

Other shoe firms also reported declines in their stock prices. Genesco Brands Inc. (NYSE: GCO), Amer Sports Inc. (NASDAQ: AMS), Caleres Inc. (NYSE: CAL), Wolverine Worldwide Inc. (NYSE: WWW), Steve Madden Ltd. (NYSE: VZ), Deckers Inc. (NYSE: DECK), Nike Inc. (NYSE: NKE), and Skechers USA Inc. (NYSE: SKS) all saw declines in their stock prices [2].

Future Outlook

Both Under Armour and Allbirds are focusing on premiumizing their brands and launching new products to drive revenue growth. Under Armour is doubling down on its Velociti and Halo franchises, while Allbirds is introducing new products and materials every month. Allbirds also expects to launch a new circularity initiative called Remix, which will utilize foam scraps and textile waste to create comfortable shoes [2].

References

[1] https://finance.yahoo.com/news/under-armour-forecasts-downbeat-second-110209393.html
[2] https://finance.yahoo.com/news/tariff-impacts-under-armour-allbirds-204325946.html