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Under Armour slides as firm faces Sports Authority headwind

Under Armour sliding
Joe Robbins | Getty Images

Shares of Under Armour dropped nearly 4 percent Wednesday on the heels of its adjusted shareholder guidance.

On Tuesday, the sports apparel firm lowered its full-year revenue and operating income forecasts to reflect the shuttering of retailer Sports Authority.

Under Armour also expects to recognize an impairment charge of about $23 million during the second quarter of 2016 related to Sports Authority's liquidation.

Analyst firms across Wall Street trimmed their price targets on the stock following the announcement, including Jefferies, which lowered it to $42 from $45.

"On one hand, we see UA having emerging brand dominance within the attractive and growing sportswear market. On the flip side, we note high expectations, leaving little room for error. As such, we remain Hold rated for now," they said in a Wednesday note to clients.

Under Armour closed down at $36.25

In 2016, Under Armour Class A shares have fallen nearly 13 percent and more than 17 percent over the past month.

UA this yearSource: FactSet

—CNBC's Anita Balakrishnan contributed to this report.