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Under Armour plunges after warning that future sales growth may stink

Reuters,Akin Oyedele   

Under Armour plunges after warning that future sales growth may stink
Stock Market2 min read

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Under Armour

(Reuters) - Under Armour Inc shares plunged 16% in pre-market trading after the company beat profit expectations but warned about future sales growth.

The retailer said North American apparel growth rate will be slower than it previously thought. It said it expects revenue to rise in the low 20% range during 2017 and 2018, which would be the slowest pace since 2009 according to Bloomberg.

The company reported better-than-expected quarterly sales, as demand for its apparels, shoes and accessories grew.

Under Armour has been offering more "athleisure" clothing - a term for popular daily wear clothing inspired by exercise outfits - in a push to expand its apparel business.

Celebrities including fashion model Gisele Bundchen and ballerina Misty Copeland endorse its athleisure lines.

Under Armour 's apparel revenue rose 18 percent to $1.02 billion, as demand for its training, golf and team sports clothing rose.

Net income rose to $128.23 million in the third quarter ended Sept. 30 from $100.48 million a year earlier.

On a per-share basis, earnings rose to 29 cents per Class C share from 23 cents. The company earned 29 cents per Class A and Class B share, from 23 cents, a year earlier.

Revenue rose to $1.47 billion, from $1.20 billion.

Analysts on average had expected a profit of 25 cents per share and revenue of $1.46 billion, according to Thomson Reuters I/B/E/S.

Up to Monday's close, the stock had fallen about 20 percent in the last 12 months.

(Reuters reporting by Jessica Kuruthukulangara and Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)

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