(MENAFN- Baystreet.ca) Under Armour (NYSE: UAA) on Monday reported quarterly earnings and sales that topped analysts' estimates, but the company trimmed its revenue outlook for the full year, citing "traffic challenges."
The lowered guidance and Under Armour's confirmation of a federal probe of its accounting practices sent the retailer's shares plunging more than 12% in premarket trading. Those shares tumbled $3.08, or 14.6%, to $18.08 in the trading day's first hour.
The Baltimore- based Under Armour said it now expects revenue to be up roughly 2% in fiscal 2019, versus a prior range of up 3% to 4%.
Analysts had been calling for annual revenue growth of 3.1%.
Net income during the quarter grew to $102.3 million, or 23 cents per share, compared with $75.3 million, or 17 cents a share, a year ago, outdistancing analyst expectations of 18 cents.
Net revenue dropped about 1% to $1.43 billion from $1.44 billion a year earlier. That beat expected sales of $1.41 billion.
Said CEO Kevin Plank remarked, "Building our long-term brand strength remains at the center of everything we do.
"Our ongoing transformation across the business continues to make us smarter, faster and more operationally excellent. As we make the turn into 2020, we are confident in our ability to deliver our fourth quarter targets while proactively supporting higher levels of strategic marketing investments that will further fuel the Under Armour brand."
Sunday, UAA said it has been cooperating with the Securities and Exchange Commission and Justice Department into whether the company used bad accounting practices to make its finances look healthier.
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