May 7, 2021
Uncategorized

Under Armour Sales Crack Under the Weight of Lagging U.S. Demand

Under Armour is feeling the heat from its waning popularity in the U.S. market.

The Baltimore-based brand today blamed lower demand in North America as well as “operational challenges” for third-quarter sales, which fell below expectations.

As a result of those issues, the company lowered its full-year sale and profit expectations, sending shares tumbling in premarket and early-morning teaching.

As of 9:30 a.m. ET, Under Armour’s shares were down more than 12 percent at $12.94.

The company said today that its Q3 revenues slid 5 percent to $1.4 billion, missing analysts’ forecast for revenues of $1.5 billion and reflecting challenges stemming from implementation of the company’s enterprise resource planning system as well as a 12 percent decline in North American sales.

“While our international business continues to deliver against our ambition of building a global brand, operational challenges and lower demand in North America resulted in third-quarter revenue that was below our expectations,” said chairman and CEO Kevin Plank. (The brand’s international revenues were up 35 percent in the quarter.)

A rendering of Under Armour’s Tysons Corner store.

While creating new excitement around its footwear has been a challenge for Under Armour over the past few months, that segment of the business experienced a modest 2 percent sales gain to $285 million, driven

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