Dive Brief:
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Under Armour Tuesday reported a Q1 13.4% profit decrease, due mostly to costs of its acquisitions of fitness trackers Endomondo and MapMyFitness earlier this year for $560 million total.
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Q1 sales rose to $805 million, a leap over Q1 $642 million in Q1 2014 and a jump over analysts' estimates of $801 million.
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The sporting gear retailer’s stock suffered this morning on the report that its full-year revenue outlook would miss expectations. The company raised its full-year revenue outlook to $3.78 billion from $3.76 billion; expectations for revenue were closer to $3.82 billion.
Dive Insight:
Under Armour has seemed destined for greatness, a sensation bolstered by its early support of golfer Jordan Spieth who wowed at this year’s Masters Tournament this month in Augusta and surprised many.
Its ambitions in digital fitness monitoring were helped by its fitness tracker acquisitions in February, and that expense has taken its toll reflected in this morning’s report. The retailer continues to be one to watch, with this expectations miss likely not much more than a hiccup — especially when compared to competitors like Lululemon or Nike, as CNBC notes.
"While the 25% growth achieved in the first quarter was a great start to the year, we are even more excited with the foundation we are establishing for future growth," said CEO Kevin Plank in the earnings report.