Under Armour's shares tumble as it trims its full-year forecast

 
Courtney Goldsmith
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Sport Clothing Company Under Armour Reports Quarterly Earnings Of Over A Billion Dollars
Sports clothing retailer Under Armour narrowed its losses in the second quarter (Source: Getty)

Under Armour shares dropped more than eight per cent today after it unveiled lower full-year forecasts in its second-quarter results.

The figures

The sportswear retailer reported a loss of three cents per share compared with a loss of 12 cents per share the previous year, which was better than Wall Street analysts expected.

Revenue increased nine per cent to $1.1bn (£833m) in the second quarter.

However, shares in the company fell 8.23 per cent to $18.39 as it cut its expectations for the year.

Under Armour now expects adjusted earnings for the full year to be between 37 and 40 cents per share, excluding impacts from restructuring. It also edged revenue down to between nine and 11 per cent growth from previous forecasts of 11 to 12 per cent growth.

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Why it's interesting

Under Armour has approved a restructuring plan to better serve its customers' "evolving needs" and the changing customer landscape.

The company plans to increase its digital capabilities as part of the restructuring.

"We've identified a number of areas to enhance our operational capabilities, drive process improvement and gain greater efficiencies," said chairman and chief executive Kevin Plank.

"We remain steadfast in driving and building our brand while shifting our operational focus to become more return-on-investment and cost of capital centric - institutionalising discipline to deliver more consistent, long-term shareholder value."

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What Under Armour said

Plank said:

More than doubling our business over the last three years has required significant investments and resources to build our brand.

We are utilising 2017 to ensure that operations across our diverse portfolio of sport categories, distribution channels and geographies are optimised as we are building a stronger, faster and smarter company.

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