Why Is Sportswear Company Under Armour Stock Tanking Today?

Under Armour shares are plunging following the company's gloomy guidance. In Q4 FY24, sales declined 4.9% to $1.33 billion, meeting estimates. Wholesale revenue dropped 7%, and direct-to-consumer revenue remained flat. Despite a gross margin expansion of 170 basis points to 45%, the company reported an operating loss of $3.5 million. FY25 revenue is projected to decline at a low-double-digit percentage rate.