Under Armour Inc (NYSE:UA) shares plunged more than 18% as its fiscal first quarter earnings fell short of expectations and weak guidance disappointed.
For Q2, the athletic apparel brand expects revenue to decline 6% to 7% while gross margins are expected to decline 340 to 360 basis points, attributed to expected supply chain headwinds from tariffs.
It expects adjusted earnings per share (EPS) between $0.01 and $0.02, significantly below the consensus estimate of $0.26.
For Q1, revenue was down 4% to $1.1 billion, in line with Wall Street estimates.
North American revenue was down 5% at $670 million while international revenue fell 1% to $467 million.
Adjusted EPS was $0.02, below estimates of $0.03.
"We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation – sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline," said Under Armour CEO Kevin Plank.
"Despite ongoing uncertainty, our brand is gaining strength and we're executing our strategic plan with clarity and confidence."
Shares of Under Armour traded down 18.8% at about $5.40 shortly after US markets opened on Friday.