knightsbridge ugg boots Under Armour shares plunge as growth slows

leather ugg boots uk Under Armour shares plunge as growth slows

Under Armour Inc. posted its first sales decline as a public company, renewing concerns about a brand that was long seen as the sportswear industry biggest growth story.A continuing slump in its North American business offset growth elsewhere, leading the company to slash its full year revenue and earnings forecasts. Sales in the third quarter also trailed analysts estimates, sending the shares plunging more than 23 per cent to close at US$12.52 in New York trading Tuesday.The sports brand has been battered over the past year amid slowing growth, its first net losses and concerns about whether its nascent footwear business has faltered.Under Armour was founded on football workout gear and then fuelled explosive growth by expanding into new categories. The company looked like it had a formidable footwear business that surpassed $1 billion in sales in 2016, but it has struggled this year.at Under Armour continue to erode, Tom Nikic, an analyst for Wells Fargo Co., said in a note to clients. deteriorating North American athletic market appears to have been the primary culprit. shares had already declined 44 per cent this year through Monday close, making it one of the worst performing stocks in the Standard Poor 500 Index.The Baltimore based company cut its sales outlook for the year to a gain of a low single digit percentage. This comes after a previous reduction in August to growth of 9 per cent to 11 per cent. It also lowered its forecast for profit excluding some items to 18 cents to 20 cents a share, down from a previous range of 37 cents to 40 cents.Chief Executive Officer Kevin Plank blamed a combination of store closings, competition and shifting tastes for the weakened business in North America, and said he expects the environment there will continue into next year. Under Armour needed to reduce its cost structure and improve operations on multiple fronts, including supply chain and pricing, because they haven kept up with the company once rapid growth,
knightsbridge ugg boots Under Armour shares plunge as growth slows
he said.must operate a better company, Plank said on a call with analysts. has been a reset year for Under Armour. company is not alone. retailers and not getting products to market fast enough.What Under Armour and Nike don talk about is that Adidas continues take market share from both of them in North America. Revenue for Adidas in that region rose 24 per cent in 2016 and is up 32 per cent in the first half of this year. The Herzogenaurach, Germany based company has thrived with a combination of reviving classic styles like Stan Smith and developing new, massive franchises like Boost, which began as a running line that has since crossed over into fashion.The Under Armour brand took a hit earlier this year when Plank said that President Donald Trump would be a asset to the country because of his experience in business. That drew criticism from NBA star Steph Curry, who is the company highest profile endorser and key to its footwear business with his own signature line of basketball sneakers.The company is in the middle of releasing several versions of the fourth edition of Curry shoes the Curry 4 and the latest was delayed. It debuted on Oct. 27, but not in stores and online orders were scheduled to ship on Nov. 18. The company declined to offer details, but did say that the next colourway of the Curry 4 on Nov. 11 will be available online and in stores.Revenue was US$1.41 billion in the third quarter, the company said. That missed the average US$1.48 billion estimate. Profit excluding some items was 22 cents a share, topping projections for 19 cents.Under Armour is suffering the pains that so many growth companies experience. At some point, operations needs to catch up with how quickly the enterprise has grown and that what the company needs to focus on now, Plank said on the call. epaper, Digital Access, Subscriber Rewards), please input your Print Newspaper subscription phone number and postal code.{ phone }{ addressPostalCode }By clicking “Create Account”,
knightsbridge ugg boots Under Armour shares plunge as growth slows
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