Under Armour warns of lower earnings

stock falls

January 15, 2009|By ANDREA K. WALKER

Under Armour shares slumped 13 percent yesterday after the Baltimore sports apparel company said that fourth-quarter earnings probably would be lower than expected because of the weak retail environment.

The company expects revenue of $179 million to $180 million and earnings per share of 16 cents to 18 cents for the quarter that ended Dec. 31.

Analysts polled by Thomson Reuters had predicted a higher revenue of $209.7 million, or 49 cents per share. Under Armour will release fourth-quarter results Jan. 29.

The company said that it had a higher cancellation than expected of orders from wholesalers. It also saw lower Internet sales.

For the year, Under Armour expects revenue of about $725 million, up 20 percent from 2007. Late last year, the company said it expected revenue of $750 million to $765 million.

It expects income from operations of $76 million to $78 million for the year, a decline from $86.3 million in 2007. The company had previously expected 2008 income from operations of $97.5 million to $104.5 million.

Under Armour shares lost $2.92, or 13 percent, to close at $19.40 yesterday.

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