Under Armour is tanking after its earnings report.
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Under Armour is plunging after disappointing earnings (UA, UAA)
Under Armour's stock price is taking a hit as it faces increased pressure from the competition.
The company is suffering from an identity crisis.
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The clothing company posted a net loss of $12.3 million, or $0.03 per share. That's an improvement over last year, when the company announced a loss of $0.12 per share.
Under Armour Class C shares are down 6.29% in early trading on Tuesday after releasing earnings before the bell. The company's revenue rose 8.7% to $1.09 billion, which is dramatically slower growth than Under Armour has been posting in recent quarters.
Increased competition from Nike and Adidas are hurting sales at Under Armour. The company is suffering from an identity crisis as it struggles to keep up with changing customer demands.
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During the earnings release, Under Armour detailed its plan to restructure its business.
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"We did not expect a great quarter, and what we got was a mixed bag," Randal Konik, an analyst at Jefferies, said in a note to clients. "We see minimal downside from here and much more significant upside potential, esp. as compares ease and Curry 4, int'l growth kicks in."
Konik set a price target of $28.00, 63% higher than the current price of the stock.
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