Skip to content
Subscriber Only
Business
Pursuits

Under Armour Shares Sink After Forecast Upsets Investors

  • Company warns of shrinking profit margins in the quarter
  • There is very high expectation around stock, analyst says
Video player cover image

Under Armour Beats Profit Estimates on Shoe Boost

Updated on

Under Armour Inc. shares declined 5.4 percent after the athletic-apparel maker gave a tepid forecast for the fourth quarter and warned of shrinking profit margins.

Revenue will grow about 25 percent this quarter, the company said on Thursday, implying a figure of roughly $1.1 billion. Operating income will climb 21 percent to about $177 million -- an outlook that Stifel Financial described as a “conservative view.” Under Armour also plans to devote $350 million to $360 million to capital spending in 2015, underscoring its push into new markets.