The wave of earnings misses continues today as sports apparel brand Under Armour (NYSE:UA, NYSE:UAA) hit a new 52-week low following its earnings call. UA stock and UAA stock are each down about 24% heading into market close.
So, what else do you need to know about Under Armour stock today?
Well, this morning the company offered its financial results for its “transition” quarter ended March 31. The company changed its fiscal year to start in April, instead of January, hence the transition period. As such, the company technically has no fiscal 2022.
Under Armour disclosed losing 1 cent per share, undershooting Wall Street estimated earnings per share (EPS) of 4 cents. The company also offered guidance for its fiscal 2023, which will run from April 1, 2022 through March 21, 2023. Under Armour expects an EPS range between 63 cents and 68 cents, well below the consensus estimate of 78 cents.
Under Armour Chief Executive Patrik Frisk commented on its past year.
“Having successfully executed a multi-year transformation and after delivering a record year in 2021 – we are continuing to serve the needs of athletes amid an increasingly more uncertain marketplace. As global supply challenges and emergent COVID-19 impacts in China eventually normalize, we are confident that the strength of the Under Armour brand coupled with our powerful growth strategy positions us well to deliver sustainable, profitable returns to shareholders over the long-term.”
What else do you need to know about Under Armour?
Under Armour Stock Sinks Following Weak Guidance
Today’s drop comes following a bearish few months for the sports apparel brand. Since reaching a 52-week high of $22 per share in November, UA has seemingly only seen red. Currently, the stock is trending close to $10 per share after today’s loss.
UAA stock has a similar story. Unlike UA, UAA shares have voting rights, though that seems to hardly affect its value currently. Since reaching its 52-week high of about $27 in November, UAA has seen a near identical decline. As of this writing, UAA is trading at almost $11 per share.
Under Armour joins a list of retailers under duress due to current economic conditions. Whether it will manage a comeback this year remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.