Under Armour takes a breather

BALTIMORE (AP) - Under Armour had one of the worst trading days in its history as investors sensed the hard-charging athletic company may be hitting the wall.

The company reported Tuesday that quarterly revenue growth was the slowest in six years and it trimmed growth projections.

Chief Financial Officer Chip Molloy said while Under Armour continues to believe that it will significantly outpace rivals, "the growth rate going forward will be less than" what was anticipated last year.

Class A shares of Under Armour Inc., which have voting power, tumbled 14 percent, the severest decline in eight years.

Under Amour is locked in a fight for sports dominance with longtime king of the hill, Nike. They have spent heavily on promotions and that has cost both companies, at least in the short term.

Gross margins at Under Armour slipped to 47.5 percent in the quarter, compared with 48.8 percent last year.

Nike reported gross margins had slipped from 47.5 percent last year, to 45.5 percent, when it reported its most recent quarterly results in late September.

The Baltimore company was stripped of its 'buy' rating at Stifel Nicolaus and analyst Jim Duffy cut his target price sharply, citing margin pressure.