Under Armour Inc. (UAA) was having a rough week after the company provided weak 2019 guidance for its North American segment in an 8-K filing during its annual investors day on Wednesday.
Under Armour laid out its five-year strategic growth plan through 2023 to little fanfare from the research firm community. Analysts at CFRA cut the company's rating to "strong sell" from "sell" while also cutting its price target to $15 from $20.
Under Armour fell 2.6% on Thursday morning after dropping 10.44% during Wednesday's session.
In the past Under Armour was a growth stock, consistently doubling its revenue year over. However, in recent quarters the company's fortunes have changed as U.S. rival Nike Inc. (NKE) has had a resurgence as has German rival Adidas (ADDYY) .
"Focusing on sustainable, profitable growth while increasing returns on capital and generating substantial cash will empower our ability to deliver industry-leading innovation, compelling premium consumer experiences and drive toward our targets, while steadily increasing returns to our shareholders," Chief Financial Officer David Bergman said in the 8-K.
The company expects revenue to return to low double digit growth by 2023 with gross margins expected to increase between 275 and 300 basis points by that year.
But the company's soft expectations in North America have Wall Street worried. The company expects revenue to be flat in its home territory, though foreign markets will provide the expected 3% to 4% revenue gain the company expects in 2019.