Under Armour posted revenue for the third quarter Tuesday that came up short of Wall Street expectations due to weaker demand across North America.
The athletic apparel and footwear retailer also cut its revenue and profit outlook for its full year. Under Armour announced that it sees a difficult backdrop for North America, its biggest market, continuing through the end of 2017.
Shares of the retailer, based in Maryland, fell by as much as 14% after the company posted the news.
Under Armour posted 22 cents in adjusted earnings per share in comparison to an expectation of 19 cents by analysts. Revenue ended the quarter at $1.4 billion, short of the expected $1.5 billion by analysts.
CEO Kevin Plank in a prepared statement said that while the company’s international business is continuing to deliver in its drive to build a global brand, the lower demand and operational challenges in North America led to revenue for the third quarter that was less than company expectations.
Plank’s statement added that the company’s management team continues to work aggressively in evolving its strategy and the level of execution to address the challenges in a proactive manner.
Net profit for the quarter at the sports apparel retailer was $54.2 million equal to 12 cents per share in comparison to $128.2 million equal to 29 cents per share for the same period one year ago. Total revenue for the company fell by 4.5% ending the quarter at $1.41 billion.
Shares of Under Armour hit a record low during August, following an announcement by the company that it would cut 2% of its worldwide workforce.
As retailers in sporting goods struggle in the U.S. marketplace, it is reported that Under Armour is looking at exiting its tennis as well as other outdoor segments.
Leaving other smaller segments such as fishing, could be helpful to the retailer in focusing on core performance segments such as golf and basketball.
Last week, its big rival Nike outlined its new strategy of pulling product from some mediocre retailers to focus on its women’s athletic footwear and apparel.
Some analysts have said that the new basketball shoe of NBA superstar Stephen Curry will be a spark to turnaround Under Armour.
Under Armour has also recently launched ArmourBox, a subscription service. The company wants to offer its customers more options in customization.
Share of Under Armour through the end of business on Monday have dropped over 40% during 2017.