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>> Under Armour looks like it's running out of gas. The athletic gear maker and smaller rival to giant Nike warning Tuesday, sales for the year will come in way below analysts' forecasts. That less than rosy outlook follows a disappointing fourth quarter, which includes the all important holiday shopping season.
That's leaving many shareholders wondering if the company can keep up the rapid growth of the past ten years. I'm Conway Gittens in New York. Under Armour's early success at taking on Nike made it a Wall Street darling. But this misstep is causing a violent reaction. The stock down 26%, some $3 billion in shareholder value gone in the blink of an eye.
The company's fast growth not only shaken by Nike, which is cutting prices to match Under Armour, but also by resurgent Adidas. The German company's comeback is so strong, that it has knocked Under Armour out of the number two spot in the US. One analyst saying Under Armour's problem is quote self-inflicted.
Noting there was too much cold weather gear and not enough fashion. CEO Kevin Plank's game plan? Freshen up the line and go aggressive on pricing. A strategy no doubt his competitors are prepared to match toe-to-toe.