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Under Armour cuts revenue forecast for North America

Sportswear maker Under Armour Inc has cut its full-year revenue forecast for North America, its biggest market, as it suffered in the face of a strong performance by bigger rivals Nike and Adidas, sending its share down 11 per cent.

Sales declined by 3 per cent to $816 million, which is more than the 1.6 per cent drop predicted by a consensus of analysts drawn up by brokerage Bernstein. The Baltimore-based firm now expects a slight decline in its North America revenue for fiscal 2019 compared with a prior forecast of flat revenue. It is still sticking to its overall growth target on higher demand for shoes and apparel abroad.

The company has been spending more to open stores and improve its online offerings in international markets. These efforts helped Under Armour post growth in its Europe and Asia Pacific markets.

The company’s net loss narrowed to $17.3 million, or 4 cents per share, in the quarter ended June 30 from $95.5 million, or 21 cents per share, a year earlier. Excluding certain items, Under Armour posted a loss of 3 cents per share, while analysts were expecting a loss of 5 cents.

Since its founding in 1996, Under Armour has had an uphill battle to stand out in an industry that stalwarts Nike Inc and Adidas AG have dominated for decades.

 
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