Under Armour slashes its forecast for the rest of the year

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Thearon W. Henderson/Getty

    Under Armour beat on earnings, but missed on revenue. The company lowered its earnings and sales forecast for the rest of the year.

Under Armour‘s stock is down about 15% after the company posted mixed third-quarter results and lowered its sales and earnings outlook for the rest of the year.

The athletic-apparel company earned an adjusted $0.22 per share as revenue fell 5% to $1.4 billion. Wall Street was looking for $0.19 on revenue of $1.48 billion, according to the Bloomberg consensus. It also announced an $89 million restructuring charge.

Under Armour now sees full-year adjusted earnings per share of $0.18 to $0.20, well below its previous forecast of $0.37 to $0.40. It also sees North American revenue up at a low single-digit percentage rate “reflecting lower North American demand and operational challenges due to the implementation of the company’s enterprise resource planning system and related service levels,” the earnings release said.

“While our international business continues to deliver against our ambition of building a global brand, operational challenges and lower demand in North America resulted in third quarter revenue that was below our expectations,” Under Armour Chairman and CEO Kevin Plank said in the earnings release. “Based on these issues in our largest market, we believe it is prudent to reduce our sales and earnings outlook for the remainder of 2017.”

Before Tuesday’s results, shares of Under Armour were down 43.51% this year.

Under Armour

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Markets Insider