NEW YORK (TheStreet) -- Under Armour (UA) - Get Under Armour, Inc. Class C Report has come a long way since it was founded 20 years ago, so investors should be confident that it will continue that track record, CEO Kevin Plank argued on CNBC's "Halftime Report" on Wednesday afternoon.
His comments come after Under Armour stock had its worst day since 2008 after the company reported 2016 third quarter financial results.
Under Armour reported earnings of 29 cents per share for the quarter before Tuesday's open, above analysts' estimate of 25 cents per share. Revenue came in at $1.47 billion, topping expectations of $1.46 billion.
Investors seem hesitant about Under Armour's "get big fast" strategy because that means "investing aggressively to expand its retail store footprint" at a pace that's quicker than Wall Street was anticiapting, noted CNBC's Scott Wapner.
"I don't know of any other pace than for us to move fast. It's all we've done. We have been a fast growing company, we have been one of the top 10 performers in the S&P 500 the last three years as well," Plank argued.
Moving fast is the way for Under Armour to go from the number three sports brand in the world to the number one spot, he said. Right or wrong decisions don't matter, as long as it's the best decision, Plank said.
Investors should note that Under Armour went from about a $285 million company in 2005 when it had its IPO to expecting about $5 billion in revenue for 2016.
"We've been in the deep end of the pool for a long time. So we're in our eleventh year as a public company. We celebrated 20 years in business this year. We've learned a lot of lessons. Number one is that this is 'welcome to the big leagues,'" Plank said.
Under Armour is still on track to reach its $7.5 billion revenue target by 2018, but sales growth will slow over the next two years.
That's because the company is taking a "long view" on its growth strategy, Plank said. Instead of focusing on its bottom line target of $7.5 billion, it wants to look past that to becoming a "$10 billion gorwing brand where we can really hit scale," Plank explained.
"Our story is about putting the infrastructure in place for us to be a $10 billion growing brand where we can really hit scale," he said.
The gap between the number three and number two sports brands is a lot bigger than the gap between number three and number four, Plank noted. That means that Under Armour has a "runway" in front of it that it can be excited about, he explained.
"We belive that we can begin to leverage and maximize and optimise shareholder value beginning in the future but for now, the right thing for us to do is to build the number one brand in the world that we can," Plank concluded.
Shares of Under Armour were lower in mid-afternoon trading on Wednesday.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Under Armour as a Hold with a ratings score of C+. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
You can view the full analysis from the report here: UA