Activewear brand Under Armour (NYSE:UA) (NYSE:UAA) is having a bit of a tough time. Shares fell over 20% after the company announced poor Q4 earnings results with sales of $1.31 billion for the quarter, (missing the $1.41 billion FactSet consensus) and EPS of $0.23 (below the $0.25 consensus).

Why? "Numerous challenges and disruptions in North American retail tempered our fourth quarter results," UA CEO Kevin Plank said in the release. One of the problems was that an oversupply of stock led to price discounts as retailers tried to shift the built-up stock: slower traffic caused significant promotional activities earlier, deeper and broader than expected, according to Plank. Other problems included intense competition (from Adidas for example) and the bankruptcy of retailer Sports Authority with more than $1 billion debt.

The company has also released very weak guidance below expectations and this has made analysts nervous (2017 revenue of $5.4 billion vs. the expected $6.1 billion). "We suspect this reflects weakening demand in its domestic wholesale channel, slower demand for footwear and apparel and international challenges," Raymond James said as it downgraded UA shares to underperform, concluding that "the growth story is coming to an end."

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