Under Armour plans to cut about 2 percent of its global workforce as it restructures its business in the face of slumping sales.
On Tuesday, the sports apparel company reported a narrower-than-expected second-quarter loss, but shares fell as the company trimmed its sales forecast for the year.
Here's what the company reported vs. what Wall Street was expecting:
Earnings per share: a loss of 3 cents, adjusted, vs. an expected loss of 6 cents, according to Thomson Reuters
Revenue: $1.088 billion vs. a forecast for $1.077 billion, analysts said
One year ago, Under Armour reported a loss of 12 cents per share on revenue of $1.001 billion.
Under Armour's stock tumbled more than 8 percent on the news, reaching a new intraday low of $18.20.
Under Armour said it now expects adjusted earnings for the full year to fall within 37 cents and 40 cents per share, excluding any impacts from restructuring. Analysts had been forecasting Under Armour to earn 42 cents a share in 2017, according to Thomson Reuters estimates.
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1 comment:
Four years ago, I thought I would visit their company store at Baltimore, and take a look at their goods. As it was the middle of winter season and I had tickets to a Ravens game that was predicted to be played in a snowstorm, I went ahead and bought a set of long underwear. Granted, they turned out to be a quality item, that are very heat retaining undergarments, but I paid OVER $100.00 for what is still just "long johns." I felt stupid for buying on the name, and for spending that much. It's no wonder the fad is wearing off, and their sales are down. Is is way overpriced, imported consumer wear. The novelty is over. Their product life cycle is on the down side. If I had any of their stock, I would be selling now.
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