Under Armour: North America revenue falls, shares plunge
(CercleFinance.com) - US sportswear maker Under Armour reported second-quarter revenue for North America that was down 3% on Tuesday, which sent its shares into a spin, down over 16% in early morning trading on Wall Street.
Revenue was up 1% at 1.2 billion dollars in the quarter ended 30 June, in line with expectations, while the group made a net loss of 17 million dollars - or 0.04 dollar per share - which was one cent less than expected.
The group's gross margin rose by 170 basis points to 46.5%, helped by supply chain improvements, and restructuring.
While its international business increased 12% to 339 million dollars, North American revenue fell by 3% to 816 million, the company said, prompting fears that the Baltimore-based company is losing ground to rival giant Nike.
Looking ahead, Under Armour said it expects revenue to increase by approximately 3% to 4% this year, anticipating a slight decline in North America.
However, investors frowned on this news, with the company's shares tumbling 16.2% in early morning trading on Tuesday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.