Why Under Armour Shares Fell More Than 15% Last Month
Shares of sporting goods and casual apparel maker Under Armour (NYSE: UA)(NYSE: UAA) fell hard in May. According to data from S&P Global Market Intelligence, Under Armour's Class A shares fell 16% and the Class C shares lost 15.2%. A disappointing first-quarter report pulled the two stocks more than 20% lower in a three-day span.
The company 's bottom line swung from earnings of $0.05 per share to an adjusted net loss of $0.34 per share. Analysts had been expecting a $0.16 loss per share. Under Armour's revenue fell 22% to $930 million. Here, your average Wall Street firm had been expecting sales near $958 million.
Under Armour expects to reduce its full-year operating expenses by $325 million through a variety of cost-saving initiatives. These include temporary layoffs, limited advertising and marketing activities, tighter hiring processes, and lower travel expenses.
Source Fool.com
