Under Armour Inc (NYSE:UA) shares are trading lower Friday in sympathy with Nike Inc (NYSE:NKE), which fell after the company reported first-quarter financial results.
- NKE Q1 Revenue: $12.7 billion beat estimates of $12.27 billion
- NKE Q1 EPS: 93 cents beat estimates of 92 cents
First-quarter revenue was up 4% year-over-year, but earnings fell 20%. The Nike Brand Digital business jumped 23%, driven by double-digit growth in EMEA, North America and APLA, partially offset by declines in Greater China. China revenues were down 16% year-over-year.
Nike said total inventories jumped 44% to $9.7 billion, driven by elevated in-transit inventories from ongoing supply chain volatility, partially offset by strong consumer demand during the quarter.
"Our focus continues to be the consumer, as we take action to navigate near-term dynamics while expanding long-term structural benefits through our Consumer Direct Acceleration strategy," said Matthew Friend, executive vice president and CFO of Nike.
Several analysts also lowered price targets on Nike following the company's quarterly results.
Related Link: Nike Q1 Earnings Highlights: Revenue And EPS Beat, Investors Pull Back On Inventory, China Concerns
Nike is the largest athletic footwear and apparel brand in the world. Under Armour develops, markets and distributes athletic apparel, footwear and accessories in North America and other territories.
UA Price Action: Under Armour has a 52-week high of $18.65 and a 52-week low of $6.42.
The stock was down 5.54% at $6.14 at time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.