Here are seven takeaways from the day, which takes place on an annual basis:
- The meeting was prefaced by a number of analysts and investors who are concerned about whether or not Under Armour has the potential to continue its sales growth.
- Analyst Simeon Siegel from Nomura Instinet said that he believes the company could benefit from “cleaning up its product margins,” meaning it could sell more sneakers and clothing directly to consumers.
- Under Armour investor day disappointed as the company set its fiscal 2019 earnings guidance to be in the range of 31 cents to 33 cents per share, which is below the 35 cents per share that data compiled by analysts surveyed by Refinitiv called for.
- The company added that its sales for the year are slated to be in the range of 3% to 4% with results slated to be “relatively flat” in North America. This is below the Wall Street guidance of growth of 5%, according to analysts.
- Under Armour also said that from 2020 to 2022, it sees its revenue growth to be in the low single digits on a compounded annual basis in North America.
- Plus, the athletic apparel maker sees its 2023 revenue growth to be in the low single digits, while international segments by that year are slated to bring in about 40% of its sales.
- “We know there will continue to be some contraction in this space,” Under Armour’s president of North America, Jason LaRose, said on the meeting with investors. “That’s OK. We’re planning for it.”
UA stock is down about 8.9% on Wednesday following the news, while UAA shares took a hit of nearly 10.5%.