Under Armour Inc. forecast another year of weak sales in North America, sending its shares tumbling on Wednesday as the sportswear maker struggles with sluggish demand in its home market.
Quarterly results disappoint
The company reported a decline in fourth-quarter revenue, with North America sales falling 12% year-over-year. Executives cited ongoing challenges in the wholesale channel and cautious consumer spending.
Shares of Under Armour fell more than 15% in after-hours trading following the announcement.
Strategic shifts underway
CEO Kevin Plank said the company is implementing cost-cutting measures and focusing on direct-to-consumer sales to navigate the downturn. However, he acknowledged that recovery will take time.
"We are taking decisive actions to strengthen our brand and improve profitability, but we expect headwinds to persist in the near term," Plank said in a statement.
Under Armour also lowered its full-year revenue forecast, projecting a decline of up to 4% compared to previous estimates.
Industry-wide challenges
The results reflect broader struggles in the athletic apparel industry, with competitors like Nike and Adidas also facing slowing demand in North America. Analysts say consumers are shifting spending toward experiences and away from discretionary goods.
Under Armour's international business showed some strength, with revenue growing 5% in the Asia-Pacific region, but not enough to offset domestic weakness.
