Under Armor shares originally jumped over 5 percent Tuesday after the sneaker manufacturer had reported better than expected fourth-quarter revenue and revenue, increased by sales of clothing and growth abroad.
Share prices rose 1.5 percent in Tuesday's premarket
Under Armor, US sales fell 6 percent in the fourth quarter to $ 965 million, while international sales grew 28 percent in foreign currency neutral terms to $ 395 million. It was said that sales were 2 percent, driven by the training business, footwear sales were down 4 percent, which Under Armor said it sold fewer shoes in discount stores during the holidays. The selling price of accessories fell by 2 per cent.
The dealer made no changes to the expectation for 2019, as it was originally published in December.
There is still a requirement that sales should be "relatively flat" in North America this year but up 3 to 4 percent overall. Wall Street was largely disappointed when Under Armor announced these goals. Analysts said they mean that the focus this year will still be on investing, and that more meaningful growth will not come to 2020 or later.
Under Armor has embraced how to increase US sales amidst a landscape of competition from Adidas, Nike and Lululemon. Part of their efforts to turn things around has included cutting staff, finding ways to trim excess inventory that hangs in stock, and promises a greater focus on new sneakers and women's items.
Under Armor, stock strength fell 12 percent in the fourth quarter.
"Under Armor continues to advance its strategic efforts, improving category management, shortening product lead times to 16 months from 21 … and expanding footwear franchises," said Telsey advisory group analyst Cristina Fernandez in a survey note before Tuesday's earnings report.
Some of the retailer's best-selling footwear brands include Project Rock, Curry 6 and Hovr sneakers. Under Armor has also recently announced that it will be the space shuttle Virgin Galactic's "technical spacewear partner", which creates custom space bags and shoes for astronauts.
Under Armor shares have climbed more than 50 percent from a year ago.