Under Armour warns of up to 25% sales drop

Under Armour is feeling squeezed.

The athletic gear maker on Friday complained it's having to spend more on promotions and will continue to do so for the rest of year as it fights for every sale with in-store spending down.

Total sales tumbled 41 percent last quarter, but the drop was not as big as feared -- with online sales taking up some of the slack; that helped Under Armour also post a loss that was smaller than expected.

But the company warns it is not out of the woods, sales could be down as much as 25 percent in the second half of 2020. Under Armor says it may not have enough product to even meet somber demand with its supply chains jammed up due to the global health crisis.

A new CEO has been struggling to right the ship as the once formidable underdog to global champion Nike has lost its way with consumers and with Wall Street. The stock has lost half its value so far this year, while Nike is down only minimally.

As for Friday's reaction to the news -shares of Under Armour turned lower after a promising start - falling another 8 percent.