Under Armour Inc. shares suffered their worst decline in two months after Morgan Stanley pointed to slowing sales at the athletic-apparel maker.
The company’s wholesale clothing sales fell 2 percent in the first quarter, according to Morgan Stanley analyst Jay Sole, who cited SportScan data. Women’s apparel was especially hard-hit, declining 7 percent. A sluggish footwear category also could hurt sales this quarter, Sole said in a report.
Under Armour beat analysts’ revenue and profit estimates for the fourth quarter, sparking a rally in January. But the industrywide slowdown could cause the company to miss sales projections with its latest results, Sole said. Under Armour is slated to release first-quarter earnings on April 21.
The stock fell as much as 5.1 percent to $41.34 in New York on Monday. Shares of the Baltimore-based company had been up 4.6 percent this year through the end of last week.