Under Armour Stock Decreased After Weak Sales in North AmericaUnder Armour company has been growing since 1996. However, the growth may be stalled by the competition with another brand, such as Nike and Adidas. The competition is growing wilder in North America for Under Armour. Then the competition is also affecting its stock.
The company and its CEO, Kevin Plank, are given anxiety over the decreasing Under Armour stock (UAA). Before this happened, the company had gained stock for more than 50 percent this year. But now it tragically went down 17 percent to $22.77. The stock decreased after investor found out that Under Armour is struggling on its North American sales. The company’s revenue is $1.19 billion and it is failed to fulfill analyst’ prediction, which was $1.2 billion. Recently, Under Armour also lowered its forecast for North American sales. The investors decided to sold off the stock afterwards. Under Armour had announced that the company expects adjusted earnings of 33 to 34 cents per share. It also hoping for 3 -4 percent world-wide revenue growth this year.
On the bright side, Under Armour's international business is strong. Its international sales grew 12 percent. Mostly, the company is growing in Europe and Asia. However, investors had their eyes on North American sales. Unfortunately it becomes the base of nearly three-quarters from the company's revenue. The competition with another company also makes it more difficult. In North America, Nike’s sales grew up to 7 percent and 5 percent for Adidas. Under Armour needs a lot of strategies to maintain its position in manufacturing industry.