Under Armour Collapses, Down 75% From Highs After Cutting Outlook (Again)

From bad to worse. Under Armour is now down over 75% from its September 2015 - do no wrong - record highs, plunging 14% in the pre-market after slashing full-year guidance again.

While it beat earnings expectations (22c vs 19c exp), UA reported a 4 percent dip in revenue to $1.41 billion, its first decline in revenue since it floated in 2005. Analysts on average had expected $1.48 billion.

However, 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 percent to 11 percent.

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.

Lowest since April 2013, down from $52.95 highs to $12.40 this morning in the pre-market...

Bloomberg reports that UA blamed the 3Q shortfall on operational disruptions from a recent technology systems transition, which Wells Fargo’s Tom Nikic views as "a major risk into the back half."

Even international's 34% constant currency growth represents "significant deceleration" from 2Q’s 54% growth, Nikic writes in note.

 

Gross margin (GM) continue to come under pressure (down 130bps y/y in 3Q), and 4Q forecast implies even worse margin erosion: GM implied down 350-400bps, which would be 4th straight year 4Q GM declined >150bps, would result in 1,000bps of cumulative erosion since 4Q13.

 

UAA business continues to come under pressure due to macro headwinds, off-trend product assortment (focus on technical/performance rather than casual/lifestyle), internal operational issues warranting underperform rating.

We are sure that Steph Curry shoe will solve all these problems.

Comments

DrLucindaX HockeyFool Tue, 10/31/2017 - 11:20 Permalink

Not happy with the sudden increase around ZH with the racial epithets. I'm guessing these "people" are shill or Brocksuckers to alienate decent people who might be checking out ZH as their faith in the corporate media collapses. Absolutely NO reason to be tossing around "the N-word." None. We need black Americans to join us. They are far more aware of the endemic corruption in government than the complacent whites.     

In reply to by HockeyFool

snblitz DrLucindaX Tue, 10/31/2017 - 12:35 Permalink

There was at least one reason.

Allowing the other side to ban words gives them more control of the dialog.

This will weaken your ability to counter their arguments.

It starts with banning this word or that word. Later it becomes a complete ban on all of your speech as we see in various universities.

In reply to by DrLucindaX

Freddie BabaLooey Tue, 10/31/2017 - 09:36 Permalink

Some of the shirts and pants that Jordan wears from UA were okay.   I saw Jordan played golf w Obama last week.  F him.  Why would you play with that scumbag.  The prices of UA's crap is insane.I will not support a Trayvon BLM company like UA or Nike.  Nike makes absolute shit that falls apart. Good Stuff: Golf shoes - Foot Joy.  Running or cross training ASIACs or New Balance.F UA, Nike and the NFL, NCAA, NBA and high school Trayvon ball.

In reply to by BabaLooey

Blue Steel 309 NoDebt Tue, 10/31/2017 - 15:43 Permalink

You mean they emphasize the evil side of capitalism. No system is perfect, but the only parts of capitalism being practiced are the maladaptive ones.

Monopoly, oligopoly, short term profits over long term planning, no social considerations, total financialization, people are objects - This is the crap they teach.

In reply to by NoDebt

ghengis86 Tue, 10/31/2017 - 08:22 Permalink

CEO should keep his mouth shut and stick to making long underwear. If he wants to do something "good", look no further than your own back yard, you pompous, ignorant fuck.

buzzsaw99 Tue, 10/31/2017 - 08:23 Permalink

i buy the type of products they sell but i have never bought anything from them.  i stopped even looking at their stuff it just seems rough and not well thought out at all.

NoDebt Tue, 10/31/2017 - 08:23 Permalink

I think $50 for a single pair of underwear is a totally reasonable price.  Nothing like dropping a grand to restock the old underwear drawer when the tighty-whiteys finally  give up the ghost.  

adr Tue, 10/31/2017 - 08:26 Permalink

Kevin Plank is a good guy but he lost control of his company to the board and the pie in the sky whack jobs long ago. The company is still searching for its core identity 20 years later. Connected fitness is dead, along with the billion dollar investment in it.People say a brand as big as US can't die. Well Reebok did and Adidas almost did as well

overmedicatedu… Tue, 10/31/2017 - 08:28 Permalink

UA will come out with it's winter line of BLM exclusive wear..and da niggar's will buy em at prices that Nike gets for a simple sneaker with jordan's name on it..da getto niggar is as dumb as liberal  white girls who buy high priced  clothes cause, it's cool ..

baldknobber Tue, 10/31/2017 - 08:28 Permalink

Under Armour built itself up as selling some kind of new fancy magical underwear, but there just aren't enough Mormons to support that kind of sustained growth

JoeTurner Tue, 10/31/2017 - 08:33 Permalink

Polyester sportswear made in Chinese sweatshops depends entirely on marketing hype from "sports heros". Since most the negro felons have made the career decision to spit on middle class America it should be no surprise that UA is going down the drain...

BigWillyStyle887 Tue, 10/31/2017 - 08:34 Permalink

Yo come on dawg, dis be an obvious attack on Steph Curry!!! Dat nigga was bout to become a kang n shieet and now whitey is tryin to opress him n shieet cuz he said Trump was bad.

bshirley1968 Tue, 10/31/2017 - 08:59 Permalink

It's a frickin clothing company, for Pete's sake.  Yeah, real high barrier to entry there, right?  Oh, oh, but my nylon,  polyester is so much nicer than your nylon, polyester. Bunch of way overpriced Chinese slave labor shit!  If it weren't for the "stupid" money spent by goobermint schools and overpriced goobermint universities, this pig would have never gotten off the ground.