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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
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Under Armour Beats Profit Estimates on Shoe Boost

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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.