Under Armour Inc. Stock Down 10% After Earnings: Here's Why
Shares of Under Armour Inc. (NYSE: UA) (NYSE: UAA) fell 10.7% and 8.8% respectively on Aug. 1, following the release of the company's second-quarter financial results. That leaves Under Armour shares down 41% so far this year, and down by 65% from the all-time high.
Mr. Market is beating up on the apparel and footwear maker for a variety of reasons. To start, its financial and operating results were underwhelming. Under Armour reported revenue of $1.1 billion, up 9%, with strong 20% growth in direct-to-consumer sales, while wholesale revenue was up 3%. Under Armour also reported a $12 million net loss in the quarter, for a loss of $0.03 per share, and a $5 million operating loss, as gross margin contracted 190 basis points to 45.8%.
Under Armour has stumbled, but management is taking steps to get back to running. Image source: Getty Images.
Source: Fool.com
Under Armour Inc. A Stock
The community is currently still undecided about Under Armour Inc. A with 1 Buy predictions and 1 Sell predictions.
As a result the target price of 8 € shows a positive potential of 34.21% compared to the current price of 5.96 € for Under Armour Inc. A.
