Under Armour Shares Plummet After Earnings Miss, Weak Guidance

By Tonya Garcia Markets MarketWatch Pulse

Under Armour Inc. shares plummeted 23.4% in Tuesday premarket trading after the athletic apparel and accessories company reported fourth-quarter earnings that missed expectations and gave weak guidance. Net income totaled $104.9 million, or 23 cents per share, down from $105.6 million, or 24 cents per share, for the same period last year. The FactSet consensus was 25 cents. Revenue for the quarter totaled $1.31 billion, up from $1.17 billion last year, but below the $1.41 billion FactSet consensus. Under Armour expects full-year 2017 revenue to rise 11% to 12% to nearly $5.4 billion, below the $6.06 billion FactSet estimate. Under Armour also announced that the company's Chief Financial Officer Chip Molloy will leave the company for personal reasons. He will stay on as an advisor to help with the transition. David Bergman, senior vice president of corporate finance, will serve as acting CFO, effective Feb.3. Under Armour shares are down 34.4% for the past year while the S&P 500 index is up 17.6% for the same period.

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