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Under Armour's 2019 guidance is "conservative," but it needs to show investors next year numbers are achievable, said a Morgan Stanley analyst.
Shares of Under Armour dropped 10% Wednesday after the sporting-apparel maker posted a mediocre revenue guidance in the long term.
Shares of the athletic company fell about 1% after it announced an update to its $200 million restructuring program.
"We experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution," Stack said. “We are very confident our sales trajectory will improve next year as these headwinds are expected to subside."
Under Armour has been cleaning up its inventory problem, according to Jefferies analyst Randal Konik.
Buy Under Armour and Foot Locker, one analyst suggested. Under Armour is set to catch Adidas in North America market share, and Foot Locker sells a lot of Under Armour sneakers. It also sells a lot of Nike sneakers, which the analyst also believes will catch Adidas.
The losses come just days after a security breach of Under Armour's MyFitnessPal app.
It's a much needed boost for the company.
The company's sales are declining faster than Wall Street thinks, according to one Macquarie analyst.
Shares of Under Armour fell after a Susquehanna analyst likened the company to Reebok for its poor brand management decisions.