Under Armour: shares heavily drop after 2017 guidance cut.
(CercleFinance.com) - Under Armour on Tuesday lowered its growth and profit guidance for 2017, citing in particular significant investments to build the brand.
The sports apparel maker reported a net loss of 12 million dollars for its second quarter, with revenue up 9 percent to 1.1 billion dollars.
The company also said it expects to incur restructuring charges of approximately 110-130 million dollars this year due to facility and lease terminations, employee severance, asset impairments, and contract termination.
Most importantly, the Baltimore-based company updated its fiscal 2017 outlook.
Net revenues are now expected to grow 9 to 11 percent versus a previous expectation of 11 to 12 percent growth, notably reflecting moderation in North American sales.
Sentiment around the stock had been weak lately and the shares have lost 37 percent year-to-date, with today's profit warning widely anticipated.
Still, the stock is currently dropping 8.8 percent at 18.3 dollars.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The sports apparel maker reported a net loss of 12 million dollars for its second quarter, with revenue up 9 percent to 1.1 billion dollars.
The company also said it expects to incur restructuring charges of approximately 110-130 million dollars this year due to facility and lease terminations, employee severance, asset impairments, and contract termination.
Most importantly, the Baltimore-based company updated its fiscal 2017 outlook.
Net revenues are now expected to grow 9 to 11 percent versus a previous expectation of 11 to 12 percent growth, notably reflecting moderation in North American sales.
Sentiment around the stock had been weak lately and the shares have lost 37 percent year-to-date, with today's profit warning widely anticipated.
Still, the stock is currently dropping 8.8 percent at 18.3 dollars.
Copyright (c) 2017 CercleFinance.com. All rights reserved.