(Bloomberg) -- Under Armour Inc. fell in early trading after its full-year earnings outlook missed analysts’ estimates, with the athletic-gear maker continuing to struggle in a turnaround effort.

The Baltimore-based company said it expects diluted earnings of 47 cents to 51 cents a share for the fiscal year ending in March, which would fall short of the 62-cent consensus estimate. Under Armour also expects its revenue to be flat to slightly up, while analysts were looking for about a 3.7% rise.

“I’m realistic about our challenges and I am confident that we have the right core components and are developing the right plans to reignite growth,” Chief Executive Officer Stephanie Linnartz said on a conference call Tuesday. “We have yet to capitalize on our full potential.”

Executives warned in February that the buildup in inventory would lead to more promotions across the category and a recovery would take longer than expected. In the fourth quarter, inventories rose 44% to $1.2 billion.

“The outlook for the upcoming year is reasonable,” Neil Saunders, an analyst at GlobalData, said in a note to clients. “However, there is minimal room for error.”

Linnartz, who joined the company in February after a long career at hotel chain Marriott International Inc., has been given the task of finding growth after her predecessor reorganized operations and cut costs. She said this fiscal year will be a “year of building,” as Under Armour embarks on its new strategic plan.

The new CEO said footwear is Under Armour’s “single most significant growth opportunity,” and now accounts for $1.5 billion in revenue as management builds a franchise around basketball star Stephen Curry, who re-signed a long-term deal with the brand earlier this year. 

Fourth-quarter revenue rose 8% to $1.4 billion, driven by strong sales in Europe and Asia. North America revenue edged up 3%.

Shares fell 4.1% as of 9:55 a.m. in New York. The stock had been down 8.7% this year through Monday’s close, compared with a 7.8% rise for the S&P 500 Index.

“We continue to see Under Armour’s market cap as undervalued versus its market value, but recognize the burden of proof lies with management execution,” Simeon Siegel, an analyst at BMO Capital Market, said in a note to clients.

(Updates with CEO comment in third paragraph, analyst comments in fifth and final paragraphs.)

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