<br><br>**Title** Under Armour Hikes Prices Amid Tariff Woes A Strategic Move in a Turbulent Market<br><br>In a move aimed at mitigating the impact of looming tariffs, sports apparel giant Under Armour has announced plans to raise prices on select products. This strategic decision comes as the company navigates uncertain times marked by trade tensions and shifting consumer behaviors.<br><br>Under Armour's latest financial report revealed a smaller-than-expected decline in quarterly revenue, thanks to its ongoing turnaround efforts. The company has been focusing on increasing full-price sales, reducing promotions, inventory, and workforce to reverse revenue declines suffered over the past two years.<br><br>To minimize the impact of tariffs, Under Armour will implement targeted price hikes and diversify its supply chain across countries with relatively lower levies under the Trump administration's trade policies. This move aims to reduce the company's reliance on Vietnam, which faces a 46% tariff on imports, as well as Indonesia, subject to a 32% levy.<br><br>The company's gross margins grew by 170 basis points in the fourth quarter to 46.7%, driven by fresh and trendier merchandise, discounts, and inventory cuts in off-price channels. This strategy of shedding lower-value sales and reducing discounts and promotions is still playing out, with the second half of the year expected to provide a clearer indication of progress.<br><br>Under Armour's first-quarter revenue is projected to decline 4% to 5%, compared to analysts' expectations of a 1.9% fall. The company's revenue fell 11% to $1.18 billion in the quarter ended March 31, slightly beating estimates.<br><br>As Under Armour navigates this turbulent market, its decision to hike prices may seem unexpected. However, it demonstrates the company's ability to adapt and pivot in response to changing circumstances. By shifting its focus towards a more premium and less promotional product assortment, Under Armour is positioning itself for a more resilient consumer base during uncertain times.<br><br>**Key Takeaways**<br><br>1. **Price Hikes** Under Armour will implement targeted price hikes on select products to mitigate the impact of tariffs.<br>2. **Supply Chain Diversification** The company plans to diversify its supply chain across countries with relatively lower levies to reduce reliance on Vietnam and Indonesia.<br>3. **Gross Margin Growth** Under Armour's gross margins grew by 170 basis points in the fourth quarter to 46.7%.<br>4. **Revenue Decline** First-quarter revenue is projected to decline 4% to 5%, compared to analysts' expectations.<br><br>As the global sports apparel landscape continues to evolve, Under Armour's decision to hike prices amid tariff woes reflects its ability to navigate uncertainty and adapt to changing market conditions.
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