Under Armour Sells Off Following Lowered Guidance, Sports Authority Restructuring

Under Armour Inc UA shares are down more than 3 percent in Tuesday's after-hours session. The company announced it now sees FY16 revenue of $4.925 billion vs. $5 billion estimates, with operating income now expected to range from $17-$19 million.

The sports apparel company expects an impairment charge of $23 million due to The Sports Authority restructuring. The company was only able to recognize $43 million of the planned $163 million in revenue.

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"While The Sports Authority's bankruptcy impacts our 2016 outlook, our brand's momentum is stronger than ever as we continue to see growth and increased demand across all categories and geographies," CEO and Founder Kevin Plank said in a press release. "This one-time event will not impact our focus on making the best decisions for Under Armour through investments that protect and drive our growth."

Shares traded recently at $36.55, down 3.1 percent after hours.