Under Armour (UAA) reports sales below Wall Street estimates
On November 3, 2021, the interior of an Under Armour shop was seen in Houston, Texas.
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Under ArmourFriday’s unexpected loss was reported by the company, with sales lower than analysts expected. The reason for this is that Covid Lockdowns in China and global supply chain issues caused problems.
Also, the guidance issued by the athletic apparel retailer was lower than Wall Street’s estimates. The shares of the retailer fell by more than 10% during premarket trading following the news.
This is how Wall Street expected the company to do in March 31st, according to a Refinitiv survey.
- Percentage of loss: Adjusted 1 cent vs. 6 cents earnings expected
- Revenue:$1.32 trillion expected vs. $1.3 billion
Under Armour posted a loss of $59.6 millions, 13c per share. This compares to a profit of $77.8million, 17c per share, one year ago.
It lost one penny per share, excluding the impact of one-off items. Analysts expected adjusted earnings per share to be 6 cents.
From $1.26 billion in the previous year, sales grew to $1.3billion. The $1.32 trillion estimate was not met.
Under Armour expects to make between 63c and 68cs per Share on an adjusted basis for its fiscal 2023. This is less than the analysts’ expectation of 86cs.
Chief Executive Officer Patrik Frrisk stated that brand must return to delivering sustainable, profitable returns as global supply issues and Covid-19 effects in China normalize.
Under Armour has released the complete financial release here.
The story is still in development. Keep checking back for more updates.