These 3 Things Have Under Armour Inc. Stock Down 18%

These 3 Things Have Under Armour Inc. Stock Down 18%

Under Armour Inc. (NYSE: UA)(NYSE: UAA) reported its fiscal third-quarter results before market open on Oct. 31, and its share prices immediately took a hit once trading opened. As of 12:17 p.m. EDT, the company's class A shares (UAA) are down 17.9%, while its class C shares (UA) are down 15.4%.

But it's not just the company's poor earnings result, which included a surprising 5% decline in sales, that's pushing shares down so hard today. Bank of America's investment banking unit downgraded Under Armour stock to "underperform," with a cut in the price target to $12; analysts cited concerns such as tougher competition and a more difficult environment in North America right now.

Unfortunately, there's more. And this is probably the biggest "bad news," because it's very material: Under Armour slashed its full-year guidance, from expectations of 9% to 11% sales growth after the second quarter, to a "low single-digit percentage rate" after its third-quarter results were in.

Continue reading

Source: Fool.com