Under Armour down after forecasting steeper annual revenue decline
UAA•Restructuring plan and stock performance
Under Armour said it sees total restructuring-program costs of about $305 million and expects the plan to be completed by Dec. 31, 2026.
As of the previous close, the stock was up about 29% year to date.
Shares fall after softer revenue outlook
Shares of sportswear maker Under Armour fell as much as 10.9% to $5.70 in morning trading after the company forecast a steeper annual revenue decline, citing weak demand in North America amid growing macroeconomic uncertainty and inflationary pressures.
The company now expects full-year revenue to fall by a mid-single-digit percentage, compared with its previous outlook for a slight decline.
"For the second quarter, we expect a more challenging consumer environment to persist, particularly in North America," said CFO Reza Taleghani.
Quarterly results and regional performance
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 of 5 cents per share, above expectations of 2 cents.
