The interior of the Under Armor Store will be seen in Houston, Texas on November 3, 2021.
Brandon Bell | Getty Images
Under armor We see a tough year coming as we get caught up in global supply chain challenges and another round of Covid’s blockade in China, which is hitting demand.
Sneaker and apparel makers announced a disappointing outlook for fiscal year 2023 on Friday after reporting unexpected losses for the three months ending March 31 and lower-than-expected sales on Wall Street. bottom.
The news has fled investors and Under Armor’s share price has fallen by more than 17% in pre-market transactions.
Also on Friday, rival Adidas said growth in 2022 would reach the lower end of its forecast range due to the “serious impact” of the coronavirus-related blockade in China. Adidas currently sees sales in Greater China declining significantly this year.
Based on analysts’ Refinitiv research, here’s how Under Armor behaved during the three months ended March 31st, compared to what Wall Street expected.
- Loss per share: Adjusted 1 cent vs. expected 6 cents revenue
- Revenue: Forecast of $ 1.3 billion vs. $ 1.32 billion
Under Armor reported a net loss of $ 59.6 million (13 cents per share) compared to a net income of $ 77.8 million (17 cents per share) in the year-ago quarter.
Except for temporary items, it lost a penny per share. Analysts were looking for adjusted earnings per share for 6 cents.
Sales increased from $ 1.26 billion in the previous year to $ 1.3 billion. It missed an estimate of $ 1.32 billion.
In North America, sales increased 4% to $ 841 million. However, its international operations increased by only 1% to $ 456 million, down 14% in the Asia Pacific region, including China.
China is not only a growing market for Under Armor to acquire new customers, but also a major manufacturing hub for many athletic apparel industries.Many international companies including Apple When Estee LauderHave got Recently, it was warned that drugs from China’s Covid controls would hurt their business...
Under Armor produced about 67% of apparel and accessories in China, Vietnam, Jordan, Malaysia and Cambodia during the 12 months leading up to December 31st. And virtually all of its footwear was made in the annual filing shows China, Vietnam and Indonesia.
Under Armor predicts adjusted revenue per share from 63 cents to 68 cents in fiscal year 2023. This is below analysts’ expectations of 86 cents.
Sales are expected to grow 5% to 7% year-on-year. Analysts were looking for a 5.4% increase.
Under Armor said the outlook is taking into account 3 percent points of headwinds as it has decided to cancel orders from vendors due to capacity issues and supply chain delays.
Under Armor’s fiscal year is from April 1st to March 31st next year.
CEO Patrik Frisk says brands should return to providing “sustainable and profitable returns” as global supply challenges and the impact of the new Covid-19 in China normalize. I said that.
Find a complete financial release from Under Armor Here..
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