Under Armour lowers guidance on Q4, FY '08 results
Under Armour (NYSE: UA) released preliminary fourth-quarter and full-year results lower than previous guidance, saying wholesale orders are down and cancellations are up amid a weak retail environment.
The company said it expects fourth-quarter earnings per share of $0.16 to $0.18 and revenue of $179 million to $180 million. It had not issued previous guidance for the quarter.
For fiscal 2008, Under Armour said it now anticipates earnings per share of $0.76 to $0.78 and revenue of $725 million to $726 million, down from its prior estimate for sales of $750 million to $765 million.
In fiscal 2007, the company reported earnings of $1.05 per share on revenue of $606.6 million.
Citi analyst Kate McShane wrote in a research note that Under Armour's reduced guidance implies heavy order cancellations from sporting goods retailers, which are attempting to keep inventories on track with lower consumer demand.
The revised guidance sent shares of Under Armour down $2.92, or 13 percent, to close at $19.40 on Jan. 14.
Under Armour will report its fourth-quarter and fiscal 2008 results on Jan. 29.
--Compiled by Wendy Geister
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