WASHINGTON — Baltimore-based Under Armour turned in strong quarterly results and reiterated that it is on track to generate $7.5 billion in annual revenue by 2018, but its sales growth forecast fell short of Wall Street expectations.
As a result, Under Armour stock tumbled as much as 15 percent in Tuesday morning trading.
The sports apparel and athletic shoe maker forecasts revenue to increase in the low 20 percent range in 2017 and 2018. That would be the slowest sales growth pace since 2009, according to Bloomberg data.
Under Armour also noted a slowdown in North America apparel growth across the industry.
“While we expect to continue to significantly outpace the apparel industry, the growth rate going forward will be less than expected from our Investor Day in 2015,” said Under Armour’s Kevin Plank in a statement.
Under Armour’s third-quarter profits still topped analyst estimates. Revenue rose 22 percent to $1.47 billion. Net income rose 28 percent, to $128 million.
Under Armour’s footwear revenues were up 42 percent from a year ago.
It was the company’s 26th consecutive quarter with revenue growth of 20 percent or more.
Under Armour stock (NYSE: UA) was down $5.38 to $32.15 per share in early Tuesday trading. Its stock was down about 9 percent for this year before Tuesday’s slide.
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