Athletic wear brand Under Armour experienced a 5% year-over-year decline in third quarter sales, with revenue for the three-month period ending September 30 falling to $1.4 billion, the Baltimore-based company reported.

“Operational challenges due to the implementation of the company’s enterprise resource planning system and related service levels, along with lower North American demand, negatively impacted revenue,” Under Armour said in a news release.

Under Armour’s wholesale business, which focuses on sales to sports specialty stores, mall stores, department stores and others, fell 13% to $880 million during the quarter. More encouragingly, direct-to-consumer sales improved 15% to $468 million.

In an earnings release, Under Armour said that it was slashing its sales expectations for the full year. “Net revenue is expected to be up at a low single-digit percentage rate,” Under Armour said, adding that 2017’s gross margin would drop 220 basis points from 46.4% in 2016. The forecast put adjusted diluted earnings per share for the year between $0.18 and $0.20.

“Our management team is working aggressively to evolve our strategy and level of execution to proactively address” challenges the company faces, said Under Armour Chairman and CEO Kevin Plank. “We understand that success in our next chapter requires managing with focused financial discipline and driving excellence into every area of our business while we amplify innovation, deliver fresh product and connect even more deeply with our consumers.”

In what was a bright spot, Under Armour’s international sales increased 35%. The brand’s sales in the Asia-Pacific region experienced the largest percentage increase of any international region, rising 52% in the quarter. “…Our international business continues to deliver against our ambition of building a global brand,” said Plank.