Under Armour Slides After Annual Sales Forecast Trails Estimates

BALTIMORE, United States — Under Armour Inc. slid in early trading after forecasting sales for the year that trailed analysts' estimates.

Revenue this year will be about $3.78 billion, the company said Tuesday. While that’s up from a previous projection of $3.76 billion, it trailed analysts’ average estimate of $3.81 billion.

Under Armour, which got its start selling polyester workout shirts in the 1990s, has kept up its rapid growth by entering new categories, like shoes and golf. Still, the company’s projected revenue gain of 23 percent this year would be the weakest growth since 2009.

Under Armour also said Tuesday that first-quarter net income slid 13 percent to $11.7 million, or 5 cents a share, from $13.5 million, or 6 cents, a year earlier. Analysts expected 5 cents. Sales rose 25 percent to $804.9 million, topping analysts’ $802 million average projection.

Shares of the Baltimore-based company dropped 3.1 percent to $85 at 7:07 a.m. in early trading in New York. The stock was up 65 percent in the 12 months through Monday, compared with a 13 percent gain for The Standard & Poor’s 500 Index.

By Matt Townsend; editors: Nick Turner, Kevin Orland, Niamh Ring.