Under Armour shares fall on sales slowdown

Sports retailer has taken on an ambitious expansion plan as it seeks to grow from niche athletics brand into a mainstream name competing with Nike

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The Independent Online

Shares in Under Armour, the maker of sports clothes modelled by Gisele Bundchen, fell in New York trading after the company reported a slowdown in quarterly growth sales.

Total sales rose 30 per cent to $937.9 million in the third quarter. That exceeded analyst estimates of $927 million- but fell short of the 35 per cent increase in the previous quarter, signalling a small deceleration.

The stock fell 5 per cent in early trading but the company insisted it is well placed going forward and raised its full-year sales forecast to $3.03 billion from its previous forecast of $2.98 billion to $3 billion.

 

Net income rose 22 per cent to $89.1 million, or 41 cents a share, from $72.8 million, or 34 cents, a year earlier. Analysts expected 40 cents per share, according to data compiled by Thomson Reuters. Under Armour, which sells leggings, running shoes and sports jackets, recently signed a multimillion dollar contract with Brazilian supermodel Gisele Bundchen to act as its spokesperson. Her husband, NFL star and New England Patriots quarterback Tom Brady signed an endorsement deal with the brand in 2010. He previously worked with Nike.

Under Armour has taken on an ambitious expansion plan and has broaden its range of products to appeal to female customers, launching new sports bras and yoga leggings designed for women.

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