How Under Armour Inc. Lost its Mojo
Shares of Under Armour (NYSE: UA) (NYSE: UAA) plunged more than 20% on Oct. 31 after the athletic footwear and apparel maker posted a dismal third quarter earnings report. Its revenue fell 5% annually to $1.41 billion, missing estimates by $70 million and marking its first sales decline as a public company. The drop was led by a 12% sales decline in its largest market, North America, which wiped out its double-digit growth in overseas markets.
On the bottom line, Under Armour's net income plummeted 58% to $54 million, and its adjusted earnings dropped 24% to $0.22 per share, which still beat expectations by two cents. Its adjusted gross margin, which excludes a $4 million impact from restructuring efforts, fell 130 basis points annually to 46.2%, as its inventories surged 22% to $1.2 billion.
Image source Under Armour.
Source: Fool.com
