Shares of Under Armour (UA) sank about 5% in Thursday morning trading after the athletic apparel maker issued disappointing guidance.
Despite posting a first-quarter profit up 70% over last year on revenue that jumped 36%, UA shares tumbled after the CFO Brad Dickerson told participants in a conference call that UA didn’t “expect the three primary drivers of our positive performers during the first quarter to carry forward into the current period,” Forbes noted.
UA expects full-year revenue of between $2.88 billion and $2.91 billion, an gain of between 24% and 25% over last year. However, some Wall Street analysts were looking for more optimistic guidance, especially given the first quarter’s results.
For the first quarter, UA reported earnings of $14 million. EPS came in at 6 cents, beating analysts who had predicted 4 cents. UA said it generated revenue of $642 million, compared to $472 million in the prior-year period. That also topped Wall Street predictions by about $45 million.
On Wednesday, Under Armour stock closed at $54.44 per share.
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