Under Armour (NYSE:UA) shares are down more than 5% premarket after the sportswear retailer missed guidance expectations.
UA shares are currently trading at $8.20 following its fourth-quarter earnings release.
Adjusted earnings per share for the quarter came in at $0.18, $0.03 better than the analyst estimate of $0.15, while revenue was $1.4 billion versus the consensus estimate of $1.36 billion.
The company said wholesale revenue increased 10% to $909M, and direct-to-consumer revenue increased 3% to $454M due to a 6% increase in e-commerce revenue, which represented 46% of Under Armour's total direct-to-consumer business.
However, Under Armour's guidance disappointed investors. The company sees FY2023 EPS of $0.47 to $0.51, below the consensus of $0.54, while revenue is expected to be flat to up slightly.
"Fiscal 2024 will be a year of building for the brand. I am prioritizing significantly amplifying global brand heat; delivering elevated design and products, with a focus on Sportstyle, footwear, and women; and positioning us to drive better sales growth in the United States," said Under Armour President and CEO Stephanie Linnartz.