Sportswear maker Under Armour Inc (NYSE:UAA) cut its full-year sales forecast due to weak demand for its products in North America, and launched a restructuring plan that involves closing facilities and leases as well as job cuts.
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Shares of Under Armour, the maker of Stephen Curry basketball gear and Bandit running shoes, fell 7.6 percent in premarket trading on Tuesday.
Under Armour said it now expected full-year revenue growth of 9 percent to 11 percent, compared with its previous forecast of 11 percent to 12 percent.
It expects full-year earnings of 37-40 cents per share, missing analysts' average estimate of 42 cents per share, according to I/B/E/S.
The company said it expects charges of about $110-130 million in fiscal 2017, related to facility and lease terminations and severance costs.
Under Armour said it closed 33 factory outlets and 23 Under Armour branded stores in the 12 months ended June 30.
The company, which wooed investors with its quick-paced growth until a few quarters ago, has been battling intense competition from Nike Inc and Germany's Adidas AG .
Under Armour's revenue rose 8.7 percent to $1.09 billion in the June quarter, continuing a recent trend of dramatically slowing growth after years of surging sales.
The company reported a net loss of $12.3 million, or 3 cents per Class A and B share, in the second quarter ended June 30, compared with a loss of $52.7 million, or 12 cents per share, a year earlier.
Under Armour posted a net loss of 3 cents on its class C shares which represent its common stock. (Reporting by Gayathree Ganesan in Bengaluru; Editing by Saumyadeb Chakrabarty)