Under Armour, Nike Stocks Hit Multi-Year Lows As Trump Tariffs Slam Asia-Reliant Sportswear Firms
The United States announced sweeping tariffs on several trading partners, including Asian nations such as Vietnam, Indonesia, and Bangladesh, which manufacture shoes and clothes for American labels.
Under Armour, Inc. (UAA) and Nike, Inc. (NKE) led declines in athleticwear brands on Thursday amid the fallout from President Donald Trump's latest import tariffs.
Under Armour shares fell 18.8% to an all-time low of $5.36. Nike stock declined 14.4% to $55.58, its lowest since December 2017.
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Rival sportswear makers Lululemon Athletica, Inc. (LULU) and Skechers USA Inc. (SKX.N) closed 9.6% and 17.1% lower, respectively, while Adidas and Puma shares on the Frankfurt Stock Exchange fell around 10%.
Trump announced sweeping tariffs on several United States' trading partners, including Asian nations such as Vietnam, Indonesia, and Bangladesh, which manufacture shoes and clothes for American labels.
Leading U.S. brands, including Nike, have spent years moving production out of China amid rising tensions between Washington and Beijing, but the latest tariffs now put even Southeast Asia-made goods at risk.
Vietnam faced a 46% tariff rate, Cambodia 49%, Bangladesh 37%, and Indonesia 32%, while Trump raised tariffs on China by an additional 34 percentage points on top of the existing 20%.
Nike produced half its footwear and roughly 30% of its apparel in Vietnam in its 2024 financial year, while Adidas relied on the Asian nation for 39% of its footwear and 18% of its apparel last year, according to a Reuters report.
For its part, Nike is facing its own challenges amid a turnaround effort to develop better products and win back customers who have recently gone to rival brands.
A user said Nike shares would likely fall more, while another said they were taking a short position.
For Under Armour, one user said that its products are not cheap, and would become less attractive if prices go up.
On Stocktwits, retail sentiment for Nike was in the 'bullish' territory, and 'extremely bearish' for Under Armour.
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