Under Armour Shares Fall as Apparel Sales Growth Slows
Sports apparel manufacturer and retailer Under Armour Inc (NYSE:UA) reported slowing quarterly growth in its apparel business, sending its shares down about 6 percent in early trading.
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.
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)