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

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Shares of Under Armour Inc. UA, -8.31% UAA, -9.77% 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 NKE, -12.81% a disappointing earnings report. Also getting hit, yoga apparel and gear maker Lululemon Athletica Inc.’s stock LULU, -6.88% slid 2.6% ahead of the open. Meanwhile, futures ES00, +0.08% for the S&P 500 SPX, -1.51% 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 ADS, -4.14% ADDYY, -5.31% dropped 5.1% and Puma SE PUM, -5.72% PUMSY, -7.52% sank 5.6% in Germany, while Asics Corp. 7936, -10.71% ASCCY, -9.55% slumped 10.7% in Japan.

This article was originally published by Marketwatch.com. Read the original article here.

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