Why Is Sportswear Company Under Armour Stock Tanking Today?
Portfolio Pulse from Shivani Kumaresan
Under Armour Inc (NYSE:UAA) (NYSE:UA) shares are plunging after the company declared gloomy guidance. The company reported a 4.9% decline in Q4 FY24 sales, with wholesale revenue down 7% and direct-to-consumer revenue flat. Apparel, footwear, and accessories revenues also declined. Despite beating EPS estimates, the company incurred an operating loss and provided a weak FY25 outlook, leading to an 8.8% drop in premarket trading.
May 16, 2024 | 12:40 pm
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Under Armour Inc (NYSE:UA) shares are also affected by the company's weak Q4 FY24 performance and gloomy FY25 outlook. The company reported a 4.9% decline in Q4 FY24 sales, with wholesale revenue down 7% and direct-to-consumer revenue flat. Apparel, footwear, and accessories revenues also declined. Despite beating EPS estimates, the company incurred an operating loss and provided a weak FY25 outlook, leading to a significant drop in share price.
Similar to UAA, UA shares are negatively impacted by the company's poor Q4 FY24 performance and pessimistic FY25 outlook. The market is reacting to the company's financial results and guidance, leading to a drop in share price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Under Armour Inc (NYSE:UAA) shares are plunging after the company declared gloomy guidance. The company reported a 4.9% decline in Q4 FY24 sales, with wholesale revenue down 7% and direct-to-consumer revenue flat. Apparel, footwear, and accessories revenues also declined. Despite beating EPS estimates, the company incurred an operating loss and provided a weak FY25 outlook, leading to an 8.8% drop in premarket trading.
The company's weak Q4 FY24 performance, including a 4.9% sales decline and an operating loss, combined with a pessimistic FY25 outlook, has led to a significant drop in share price. The market is reacting negatively to the company's guidance and financial results.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100