Under Armour down after forecasting steeper annual revenue decline
UAA•Shares fall after weaker revenue outlook
Shares of sportswear maker Under Armour UAA.N were down about 3% at $6.20 in premarket trading after the company forecast a steeper annual revenue decline.
The company cited weak demand in North America amid growing macroeconomic uncertainty and inflationary pressures. It now expects full-year revenue to fall by a mid-single-digit percentage, compared with a previous outlook for a slight decline.
Restructuring costs and stock performance
UAA said total restructuring-program costs are expected to be about $305 million, with the plan expected to be completed by Dec. 31, 2026.
As of the last close, the stock was up about 29% year to date.
Quarterly results miss revenue expectations
Under Armour posted first-quarter revenue of $1.10 billion, narrowly missing analysts' estimates of $1.11 billion, according to data compiled by LSEG.
Net revenue in its North American segment fell 9% in the quarter. The company maintained its annual adjusted profit forecast and posted quarterly adjusted earnings per share of 5 cents, above expectations of 2 cents.
