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Under Armour, Lululemon stocks fall in wake of Nike's disappointing earnings report

Shares of Under Armour Inc. slumped 2.6% in premarket trading Friday, despite a rally in the broader stock market, as the athletic apparel and gear maker suffered collateral damage from rival Nike Inc.'s a disappointing earnings report. Also getting hit, yoga apparel and gear maker Lululemon Athletica Inc.'s stock slid 2.6% ahead of the open. Meanwhile, futures for the S&P 500 rallied 0.5%. Nike's stock tumbled 10.2% in the premarket, after the company reported late Thursday fiscal first-quarter profit and sales that topped expectations, but warned that gross margins would be hurt for the rest of the fiscal year as it cuts prices to shed excess inventory. Among shares of other Nike rivals, Adidas AG dropped 5.1% and Puma SE sank 5.6% in Germany, while Asics Corp. slumped 10.7% in Japan.

-Tomi Kilgore

 

(END) Dow Jones Newswires

09-30-22 0709ET

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