The sportswear maker's stock plunged after it reported weak revenue and issued a disappointing sales forecast. Fred Katayama reports.
Under Armour's shares plunging, losing a quarter of their value at the start of trading Tuesday. The sportswear maker's quarterly profit unexpectedly fell. Revenue grew as customers bought more basketball and running shoes but that was much less than expected. Under Armour's products faced intense competition as rival Nike slashed prices on some products and Addidas made huge inroads in the U.S. athletic footwear market. That battle could get even more fierce. UBS analyst Michael Binetti said, "With Under Armour stepping up promotions ... its major clients Foot Locker and Finish Line citing a tough retail environment, and cautious orders from sports retailers, the sportswear maker is in for a tough year ahead." Under Armour also issued a weak sales outlook for the full year. Investors didn't take chances. Nike shares also fell as did those of Foot Locker and Finish Line.