Under Armour cuts profit forecast as costs surge
2022.08.03 14:46
FILE PHOTO: A signage is seen at an Under Armour store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) – Under Armour Inc (NYSE:UAA) lowered its annual profit forecast on Wednesday as its margins take a hit from surging transportation and commodity costs as well as more discounts to attract customers.
COVID-19 flare-ups, worker shortages and the Russia-Ukraine war have snarled global supply chains and driven up prices of raw materials such as cotton, pinching profit margins of companies at a time when they are also seeing increasing consumer pushback to price hikes.
Under Armour (NYSE:UA) projected an adjusted profit of $0.47 to $0.53 per share for fiscal 2023, compared with its previous forecast of $0.63 to $0.68 per share.
Net revenue in the first quarter ended June 30 stayed flat at $1.35 billion, marginally ahead of analysts’ estimates of $1.34 billion, according to Refinitiv IBES.
