On Wednesday, Under Armour Inc, which is a sportswear maker has forecast ed its revenue growth as well as profit for the year 2019 and that is below the estimations of the Wall Street.
This is because the company is expecting flat sales in North America next year. The news was reflected in the share prices which witnessed a fall of 11 percent.
Due the immense competition from the well established brands such as Nike Inc as well as Adidas AG, the company has been struggling so as to establish its market share in the market of the United States.
Under the estimation of the earnings forecast by the Armour, its estimation fell short by almost 31 to 33 cents from the estimates of the analysts. This in turn clearly reflects the struggle of the company to gain a market share in the North America.
The expectations of the analysts are that the company will be posting a profit of about 35 cents per share in the year 2019.
Under Armour, which is a sportswear maker that is Baltimore, Maryland based has also stated that the company is expecting its revenue to increase by 3 to 4 percent in the year 2019.
However, according to the IBES data from the Refintiv, the analysts are expecting an increase of about 5 percent.
According to Susan Anderson of B Riley, the forecasts by the company are clearly indicative of the fact that the turnaround for it is still far away.
On Wednesday, in a meet conducted to address the investors, Under Armour stated that in the year 2018, it was expecting its gross margins to be flat in comparison to the earlier projection of “flat to down slightly.”
For the years 2020-2022, the company has also forecasted the CAGR to be up low slightly in North America.
Source: Reuters, KGFO
