By
Bloomberg
Published
May 16, 2024
Under Armour Inc. stock tumbled in premarket trading after the sportswear maker gave a full-year outlook that fell short of Wall Street’s expectations.
The company is going through a transitional period as founder Kevin Plank, who stepped down from the CEO position in 2019 amid a series of scandals, retook the role in April. Under Armour is looking to reinvigorate its business amid a continued decline in revenue.
“Due to a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business,” the company is taking steps that “will pressure our top and bottom line in the near term,” Plank said in a statement.
Under Armour has been particularly pressured in its home market of North America, where sales decreased 10% last quarter. These troubles were partially offset by strength in international markets, including Europe, the Middle East and Africa.
Shares fell as much as 17% in premarket trading on Thursday in New York. The stock was down 23% this year through Wednesday’s close, lagging the S&P Midcap 400 Index, which has gained 9.3%.