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BALTIMORE, United States — Under Armour Inc.'s second-quarter profit fell 57 percent as the sporting-goods maker took a hit from the bankruptcy of one of its largest customers and increased spending to fuel its sales growth.
Net income dropped to $6.34 million from $14.8 million a year earlier, the Baltimore-based company said in a statement Tuesday before the market opened. Excluding some items, profit was 4 cents a share, meeting analysts’ average estimate. Sales advanced 28 percent to $1 billion, matching analysts’ average projection.
Under Armour has been spending to enhance its e-commerce operations and expand its presence beyond apparel in categories like footwear and wearable fitness technology. The company also was hit by $23 million in impairment expenses related to the liquidation of the Sports Authority Inc.
Under Armour fell 3.2 percent to $42.20 at 7:13 a.m. in early trading in New York on Tuesday. The shares had climbed 4.7 percent this year through Monday. That increase follows gains of 19 percent last year and 56 percent in 2014.
By Matt Townsend; editors: Nick Turner, Kevin Orland and Molly Schuetz.
