Kevin Plank, founder and CEO of Under Armor Inc., speaks at the 2017 Consumer Electronics Show (CES) in Las Vegas, Nevada, USA, Friday 6. January 2017.
Patrick T. Fallon | Bloomberg | Getty Images
Under Armor on Tuesday morning reported a mixed fiscal second quarter, sending its shares down about 13% in premarket trading.
The athletic clothing retailer updated the outlook for the entire year and now expects sales in North America to decline slightly. Earlier, home revenue was expected to be "relatively flat" in 201
CEO Kevin Plank said in a statement Under Armor remains "sharply focused on … long-term strategies."
Here is what Under Armor reported for its fiscal second quarter ended June 30, compared to what analysts expected, based on data from Refinitive:
- Adjusted loss per share: 4 cents to 5 cents expected  Revenue: $ 1.192 billion vs. $ 1.199 billion expected
Under Armor reported a narrower net loss of $ 17.3 million, or 4 cents per share, compared with a loss of $ 95.5 million, or 21 cents per share, a year ago. The loss in the last period included a penny per share from its minority stake in a Japanese licensee. The results were better than the loss of 5 cents per share as analysts expected, according to Refinitiv.
Net income for the second quarter was $ 1.192 billion, up from $ 1.175 billion a year ago, but missing $ 1.199 billion estimates. [19659002UnderArmoursaatsalesofclothesproductsdecreased11%mensfootwearincrease47%
In North America, sales fell 3.2% during the quarter, while Under Armor's international business grew by 12% and now accounts for 28% of total sales. ] for the financial year. According to Refinitive, analysts had called for 35 cents per share.
Under Armour's greatest challenge is still to come back to growth in North America, a market where more buyers are increasingly buying sportswear and running shoes as casual wear, but under Armor's equipment is better known for being worn during high endurance activities.
The company has also said it wants to win over more women, but it's like Nike is similarly trying to entice more female customers with sportswear and yoga pants, and start-ups like Outdoor Voices, Bandies and Gap's Athlete badge floods the place.
As during the market on Monday, Under Armor shares had gained more than 50% this year.