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(Sharecast News) - Shares in Under Armour tanked on Tuesday after the US sportswear group reported a bigger loss than expected in its fourth quarter and disappointed with current-year guidance amid rising costs and increased marketing spend.
The company reported total revenues of $1.2bn in the fourth quarter, representing a 1% year-on-year decline and a 4% drop at constant currency.
Sales in the key North American market dropped 7% to $641m, while international revenues jumped 10% at $539m, helped by double-digit growth in Asia-Pacific and Latin America. Wholesale revenues were down 3% at $748m.
Net losses reduced to $43.4m or 10cents a share for the fourth quarter, up from $67.5m or 16cents the year before, though the adjusted loss of 3cents per share missed the 2cents loss predicted by analysts.
For the fiscal year as a whole, revenues fell 4% to $5.0bn, while the net loss more than doubled to $496m from $202m previously.
"Our fiscal 2026 performance reflects the ongoing intentional steps we're taking to reset the business and restore the discipline required to operate as a best-in-class brand," said Kevin Plank, president and chief executive.
"Over the past two years, we've addressed structural and macro challenges head-on while elevating our product strategy. We're streamlining our operating model and increasing accountability in execution, driving a more controlled and predictable business."
Plank predicted that the topline will "stabilise" in fiscal 2027, but the company's adjusted earnings guidance of 8cents to 12cents came in well below the 23cents expected by the market.
The stock was down 18.3% at $4.95 by 1450 BST.
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