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UnderArmour Sinks after Inventories Rise in Q4 and Soft Profit Outlook
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UnderArmour Sinks after Inventories Rise in Q4 and Soft Profit Outlook

Shares of Under Armour (NYSE: UAA) sank in pre-market trading at the time of publishing on Tuesday after the sportswear company’s inventories continued to rise at the end of fiscal Q4. The company’s inventories rose 44% year-over-year in fiscal Q4 to $1.2 billion even as UAA delivered a beat on the top line and bottom line.

In addition, the company guided for a soft FY24 as revenues are expected to be flat or up slightly while diluted earnings are expected to be between $0.47 and $0.51 per share, below consensus estimates of $0.61 per share.

In fiscal Q4, Under Armour posted revenues of $1.4 billion, up by 8% year-over-year and above consensus estimates of $1.36 billion. The company reported adjusted diluted earnings of $0.18 per share, beating analysts’ expectations of $0.15 per share.

Analysts are cautiously optimistic about UAA stock with a Moderate Buy consensus rating based on four Buys and six Holds.

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