Under Armour Says More Discounting in Store for Sports Apparel
- Full-year margins will be hurt by promotions, executives say
- Investors will look to incoming CEO to restore past growth
An Under Armour store in Livermore, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Under Armour Inc. shares slipped after executives said discounting will continue for a prolonged period as the athletic brand works through excess merchandise.
Inventory buildup has weighed down the sports-apparel industry due to unpredictable demand and long freight times. That’s led to heavy promotional activity to get goods off store shelves. Under Armour’s inventory rose 50% to $1.22 billion for the third quarter ended Dec. 31, compared with the prior year.