Under Armour Shares Just Got Slammed After Dicks’ Sporting Goods Said This

Shares of Under Armour saw a dive on Wednesday after Dick’s Sporting Good’s called the brand out for its weak sales.

Under Armour was blamed by Dick’s Sporting Goods for contributing to it missing on sales expectations in the last quarter.

According to Dick’s, sales of Under Armour, which has been moving into more low-price retailers like Kohl’s, took a hit during the fiscal second quarter.

“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,” said 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.”

According to Stack, the challenges with Under Armour should subside in 2019.

“Our Under Armour business has been difficult,” Stack exclaimed. “We are … looking at how we can grow moving forward. … Between us, we think we are going to get this figured out.”

“There will be a significant change [at Dick’s] in the direction of Under Armour,” he told analysts.

Disclaimer: We have no position in Under Armour Inc Class (NYSE: UAA) nor Dicks Sporting Goods Inc. (NYSE: DKS) and have not been compensated for this article.