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Under Armour shares sink 10% on sales miss

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Kevin Plank, founder and chief executive officer of Under Armour Inc., speaks during the 2017 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Friday, Jan. 6, 2017.

Patrick T. Fallon | Bloomberg | Getty Images

Under Armour on Tuesday morning reported mixed earnings, sending its shares down more than 10% in premarket trading.

The athletic apparel retailer updated its outlook for the full year and now expects sales in North America to decline slightly, compared with a previously outlook for revenues from its home turf to be “relatively flat” in 2019. Under Armour has been struggling to keep pace with rivals Nike, Lululemon and Adidas in the U.S.

CEO Kevin Plank said in a statement Under Armour remains “sharply focused on … long-term strategies.”

Here’s what Under Armour reported for its fiscal second quarter, compared with what analysts were expecting, based on data pulled from Refinitiv:

  • Adjusted per-share loss: 4 cents vs. 5 cents expected
  • Revenues: $1.192 billion vs. $1.199 billion expected

Under Armour reported a narrower net loss of $17.3 million, or 4 cents a share, compared with a loss of $95.5 million, or 21 cents per share, a year ago. That was a penny better than the loss of 5 cents per share that analysts were expecting, according to Refinitiv.

Net revenues for the second quarter were $1.192 billion, up from $1.175 billion a year ago but missing estimates for $1.199 billion.

As of market close on Monday, Under Armour shares had rallied more than 50% this year.

This is a developing story. Please check back for updates.

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