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