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Reuters
Published
Jan 31, 2017
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Under Armour quarterly results miss estimates; gives bleak forecast

By
Reuters
Published
Jan 31, 2017

Sportswear maker Under Armour reported lower-than-expected quarterly profit and sales, and forecast 2017 revenue well below Wall Street estimates, hurt by stiff competition and slowing growth in North America.


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The company's shares slumped 24 percent in premarket trading on Tuesday, and were a drag on larger rival Nike's stock as well, which were down 2.3 percent.

Under Armour also said Chip Molloy, its Chief Financial Officer for about a year, would step down for personal reasons. Senior Vice President David Bergman will be the acting CFO from Feb. 3.

The sportswear maker forecast its 2017 revenue to rise 11 to 12 percent to nearly $5.4 billion. Analysts on average expected $6.05 billion, according to Thomson Reuters I/B/E/S.

Baltimore-based Under Armour's net sales in North America rose 5.9 percent in the quarter, but was well below the average increase of about 24 percent it has reported every quarter since 2013.

Revenue for the fourth quarter ended Dec 31. rose about 12 percent to $1.31 billion - the slowest growth in eight years. Analysts on average expected $1.41 billion.

Net income fell to $104.9 million from $105.6 million a year earlier.

 

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