The shares of sports apparel maker Under Armour (UA) are sinking after the company announced weaker than expected results and provided revenue guidance that also came in below expectations. Additionally, the company announced that its CFO would leave the company, effective February 3. Following the report, several Wall Street analysts have downgraded the formerly high-flying stock.

RESULTS: Under Armour reported fourth quarter earnings per share of 23c, versus the consensus estimate of 25c. The company's revenue came in at $1.3B, compared with the consensus outlook of $1.41B. Its gross margin dropped to 44.8% versus 48% during the same period a year earlier. Moreover, for fiscal 2017, Under Armour provided revenue guidance of about $5.4B, versus the consensus estimate of $6.06B. The apparel maker blamed several factors for its weaker than expected results, including the bankruptcies of a number of retail chains, its lack of sufficient lifestyle inventories, negative foreign currency and mix shifts, and "aggressive" inventory management efforts. Despite the shortfalls, Under Armour CEO Kevin Plank stayed optimistic. "The strength of our Brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses -- footwear, international and direct-to-consumer -- give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders," Plank stated.

CFO RESIGNATION: Under Armour CFO Chip Molloy, who has only been with the company since January 2016, announced that he would step down from the position, effective February 3, due to personal reasons.

ANALYST REACTION: Piper Jaffray analyst Erinn Murphy reacted to the news by downgrading the stock to Neutral from Overweight. Noting that the company's Q4 sales missed expectations by a large amount, Murphy added that its gross margins "under performed meaningfully." Furthermore, Molloy's departure makes the company's outlook less certain, according to Murphy, who slashed her price target on the shares to $17 from $41. Meanwhile, Bank of America Merrill Lynch downgraded the apparel maker to Neutral from Buy, saying it has become more difficult for the company to generate revenue," particularly in North America," and its 2017 guidance was "very disappointing." Although Under Armour has significant opportunities in the long-term, those opportunities are "offset by near-term top line challenges," according to the firm. Bank of America slashed its price target on the shares to $22 from $40.

OTHERS TO WATCH: Piper's Murphy believes the athletic space, including market-leader Nike (NKE), will lower trade in sympathy with Under Armour today, predicting that footwear retailers such as Foot Locker (FL) and Finish Line (FINL) "will likely be hurt the worst."

PRICE ACTION: In late morning trading, Under Armour shares have dropped over 23% to $22.10, while Nike has slid 1% to $52.50. Shares of Finish Line and Foot Locker have both declined fractionally.