Under Armour Shares Fall as Apparel Sales Growth Slows

Earnings Reuters

Sports apparel manufacturer and retailer Under Armour Inc (UA) reported slowing quarterly growth in its apparel business, sending its shares down about 6 percent in early trading.

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The company's apparel sales, which make up three-quarters of total revenue, jumped 25.6 percent to $704.5 million in the quarter ended Sept. 30.

The business, which sells training t-shirts, warm-up jackets and swimwear, has been expanding more than 30 percent for the preceding three quarters.

Total sales rose 30 percent to $937.9 million in the third quarter, compared to a 34 percent rise in the preceding quarter.

Analysts on average expected revenue of $925.8 million, according to Thomson Reuters I/B/E/S.

Under Armour also raised its full-year 2014 sales forecast for the third time.

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The company now expects sales of $3.03 billion, compared with its earlier forecast of $2.98 billion to $3 billion.

Analysts on average had expected $3.02 billion.

Under Armour said net income rose to $89.1 million, or 41 cents per share, in the third quarter ended Sept. 30, from $72.7 million, or 34 cents per share, a year earlier.

Analysts on average expected 40 cents per share.

Baltimore, Maryland-based Under Armour's shares fell to $61.82 on the New York Stock Exchange on Thursday. 

(Reporting by Ramkumar Iyer in Bangalore; Editing by Don Sebastian)