Weaker demand for Under Armour (NYSE: UA) products across the U.S. and Canada is clearly hurting the athletic apparel retailer.
Under Armour also reported third-quarter revenue that fell short of analysts' expectations, as it booked an $85 million charge for restructuring efforts during the period.
Earnings per share came in at 22 cents, adjusted, as opposed to the 19 cents expected by analysts. Revenues were $1.4 billion, slightly below the $1.5 billion expected.
"While our international business continues to deliver against our ambition of building a global brand, operational challenges and lower demand in North America resulted in third quarter revenue that was below our expectations," CEO Kevin Plank said in a statement.
On August 1, the company announced a restructuring plan, which detailed expectations to incur total estimated pre-tax restructuring and related charges of approximately $110 million to $130 million.
For the latest quarter, Under Armour's North America sales were down 12%, while international revenue climbed 35%.
Under Armour cut its sales expectations and is now calling for revenue to be in the low single-digit percentage range, "reflecting lower North American demand and operational challenges." That compares to a previous forecast of growth of 9% to 11%.
Shares opened Tuesday at $12.98, down $1.76, or 11.9%, from Monday’s close.
