Under Armour shares sink 12% on sales miss, sees more weakness ahead in North America

  • Under Armour reports mixed second-quarter earnings results.
  • The athletic apparel retailer updates its outlook for the full year.
  • Under Armour is now calling for sales in North America to fall slightly in 2019, compared with a prior outlook for sales to be “relatively flat.”

Under Armour on Tuesday morning reported a mixed fiscal second quarter, sending its shares down about 13% in premarket trading.

The athletic apparel retailer updated its outlook for the full year and now expects sales in North America to decline slightly. Previously, it expected revenue on its home turf to be “relatively flat” in 2019. Under Armour has been struggling to keep pace with rivals Nike, Lululemon and Adidas in the U.S., and it has been forced to use heavy promotions to get rid of unsold merchandise in retailers like Kohl’s and Dick’s Sporting Goods — a tactic that weighs on profits.

CEO Kevin Plank said in a statement Under Armour remains “sharply focused on … long-term strategies.”

Here’s what Under Armour reported for its fiscal second quarter ended June 30, compared with what analysts were expecting, based on data pulled from Refinitiv:

Adjusted per-share loss: 4 cents vs. 5 cents expected
Revenue: $1.192 billion vs. $1.199 billion expected
Under Armour reported a narrower net loss of $17.3 million, or 4 cents a share, compared with a loss of $95.5 million, or 21 cents per share, a year ago. The loss in the latest period included a hit of a penny per share from its minority stake in a Japanese licensee. The results were better than the loss of 5 cents per share that analysts were expecting, according to Refinitiv.

Net revenue for the second quarter was $1.192 billion, up from $1.175 billion a year ago but missing estimates for $1.199 billion…

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