(Sharecast News) - Shares in Under Armour tanked on Tuesday after the US sportswear group reported a bigger loss than expected in its fourth quarter and disappointed with current-year guidance amid rising costs and increased marketing spend.
The company reported total revenues of $1.2bn in the fourth quarter, representing a 1% year-on-year decline and a 4% drop at constant currency.



Sales in the key North American market dropped 7% to $641m, while international revenues jumped 10% at $539m, helped by double-digit growth in Asia-Pacific and Latin America. Wholesale revenues were down 3% at $748m.

Net losses reduced to $43.4m or 10 cents a share for the fourth quarter, up from $67.5m or 16 cents the year before, though the adjusted loss of 3 cents per share missed the 2 cents loss predicted by analysts.

For the fiscal year as a whole, revenues fell 4% to $5.0bn, while the net loss more than doubled to $496m from $202m previously.

"Our fiscal 2026 performance reflects the ongoing intentional steps we're taking to reset the business and restore the discipline required to operate as a best-in-class brand," said Kevin Plank, president and chief executive.

"Over the past two years, we've addressed structural and macro challenges head-on while elevating our product strategy. We're streamlining our operating model and increasing accountability in execution, driving a more controlled and predictable business."

Plank predicted that the topline will "stabilise" in fiscal 2027, but the company's adjusted earnings guidance of 8 cents to 12 cents came in well below the 23 cents expected by the market.

The stock was down 18.3% at $4.95 by 1450 BST.

• News Channel