Under Armour Slashes Revenue Outlook, Plans Premium Pivot
UA sits 56% above its 52-week low of $3.95.
Summary
Under Armour cut its full-year revenue outlook to a mid-single-digit decline from a prior 'slight decline,' citing weakening traffic in North America and Asia-Pacific. Q1 revenue fell 3% to $1.1B, in line with estimates, but North America sales plunged 9%. Adjusted EPS of $0.05 beat the $0.02 consensus, and full-year adjusted EPS guidance was maintained at $0.08-$0.12. The company is stepping up promotions to clear inventory, but CEO Kevin Plank outlined a strategic shift to reduce reliance on discounting and focus on premium products like HeatGear and Velociti. The stock dropped as much as 7% before paring losses.
At the time of this announcement, UA was trading at $6.17 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $3.95 to $7.91. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.