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
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.
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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