Under Armour shares tumbled Wednesday after Dick’s Sporting Goods blamed the athleisure wear company, in part, for missing sales expectations during the latest quarter.
Dick’s said sales of Under Armour, which has been moving into more low-price retailers like Kohl’s, declined during the second quarter. The moves by Under Armour have frustrated companies like Dick’s that try to sell inventory at higher prices. Shoppers are now seen flocking elsewhere for a better bargain.
Under Armour shares were falling by more than 7 percent Wednesday morning on the news.
A representative from Under Armour didn’t immediately respond to CNBC’s request for comment.
“As expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline,” Dick’s Sporting Goods CEO Ed Stack said in the company’s earnings release. “In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution.”
Under Armour shares have still climbed almost 40 percent so far this year, bringing its market cap to about $8.6 billion.
This is a developing story. Please check back for updates.
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