Under Armour shares plunged as much as 27 percent Tuesday morning as its disappointing results spurred Wall Street analysts to warn that rough times are ahead for the athleticwear industry.
The Baltimore-based sportswear maker reported lower-than-expected quarterly profit and revenue, hurt by stiff competition and slowing growth in North America, and also forecast 2017 sales well below analysts’ estimates.
Under Armour said Chip Molloy, its chief financial officer for about a year, will step down for personal reasons. Senior Vice President David Bergman will be acting CFO from Feb. 3.
Net sales in North America rose 5.9 percent in the quarter, but that was well below the quarterly average growth of about 24 percent it has reported since 2013.
The company has been facing intense competition from No. 1 US sportswear maker Nike, which has cut prices on some products to match Under Armour’s.