Under Armour is plummeting after earnings
- Under Armour beat on earnings, but missed on revenue in its third-quarter report.
- Shares plummeted about 15%.
- The company lowered its guidance for the rest of the year.
Under Armour reported mixed earnings on Tuesday before the bell, and slashed its foward-looking guidance for the rest of the year.
Shares are down 14.86% to $12.60 following the report.
The company reported adjusted earnings of $0.22 per share, beating the $0.19 that Wall Street was expecting. Revenue came in at $1.4 billion, missing the $1.48 billion that economists were looking for.
Under Armour slashed its earnings guidance from $0.18 to $0.20 from $0.37 to $0.40 for the rest of the year.
"Results clearly were poor," Randal Konik, an analyst at Jefferies, said in a note to clients. "While we like the momentum in direct to consumer, the positive trends in footwear, and the strength internationally, it was more than offset by weakness in North America, softness in wholesale, high inventory, operational difficulties, and a terrible outlook."
Competition in the sneaker and athletic apparel spaces are hot right now, with rivals like Adidas and Nike fighting Under Armour for their shares of consumer spending. The retail companies are battling amidst an ongoing retail apocalypse where malls and brick-and-mortar stores are shuttering nationwide due to shifting consumer habits.
It's not all bad news for Under Armour though, Konik said.
"The good news is the guidance is lowered so significantly that the company should be able to meet or beat its outlook," he said.
Under Armour is down 51.55% this year.
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