Under Armor (UAA) reports sales below Wall Street estimates

On Friday, Under Armor reported unexpected losses and sales below analyst estimates as the company grappled with global supply chain issues and Covid lockdowns in China.

The sportswear retailer also released a forecast that came in below Wall Street estimates. Its shares fell more than 10% in premarket news.

Here are the company’s results for the three-month period ending March 31, compared to what Wall Street expected based on a Refinitiv poll of analysts:

• Loss per share: 1 cent adjusted for expected profit of 6 cents
• Income: $1.3 billion vs. expected $1.32 billion

Under Armor reported a quarterly net loss of $59.6 million, or 13 cents per share, compared to a net income of $77.8 million, or 17 cents per share, a year earlier.

With the exception of one-time items, he lost a penny per share. Analysts had expected adjusted earnings per share of 6 cents.

Sales rose to $1.3 billion from $1.26 billion a year earlier. This falls short of estimates of $1.32 billion.

For fiscal year 2023, Under Armor is forecasting earnings of 63 cents to 68 cents per share on an adjusted basis, below analysts’ expectations of 86 cents.

Chief Executive Officer Patrick Frisk said the brand should return to delivering “sustainable and profitable profits” as global supply issues and the new effects of Covid-19 in China normalize.

Find the full financial report from Under Armor here.

This story is evolving. Please stay tuned for updates.