REUTERS: Under Armour Inc on Wednesday forecast 2019 revenue growth and profit below analysts' estimates, citing relatively flat sales in North America, sending its shares down as much as 11 percent.
The Baltimore, Maryland-based company's earnings forecast of 31 cents to 33 cents per share also fell short of analysts' estimate, reflecting the company's struggle to turnaround its North America business.
The sportswear maker said it expects revenue to grow between 3 percent and 4 percent next year, while analysts were expecting a rise of 5 percent, according to IBES data from Refinitiv.
Analysts are expecting the company to post a profit of 35 cents per share in 2019.
Under Armour, which grew to fame with its moisture-wicking T-shirt with synthetic fibers, has been struggling to compete with big players like Nike Inc and Adidas in its home market.
Under Armour, which addressed investors at its headquarters on Wednesday, also said it expects 2018 gross margin to be flat compared with its previous projection of "flat to down slightly."
The company expects CAGR to be up low single digits in North America between 2020 and 2022, mid teens in EMEA, low double digits in Latin America and mid 20s in Asia Pacific.
"Overall, guidance supports our belief that a turnaround is still a ways off and that 2019 numbers will likely need to come down in order to reflect the pushed out recovery," Susan Anderson, an analyst with B Riley noted.
Despite a 10 percent fall in shares of Under Armour's Class A shares, the stock is up 37.3 percent this year.
(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva and James Emmanuel)