(Reuters). Under Armour Inc. warned on Friday that its profit margin will be under pressure for the current quarter. The sportswear manufacturer is facing high transportation costs as a result of COVID-19-led disruptions in its supply chain.

The company’s shares fell to $19.30 in premarket trade, 4.5% after rising 23% over the previous year.

The pandemic-led inflation in the supply chain, from labor to raw material, has seen Corporate America raise prices for everything from hamburgers and hoodies. However many businesses were unable to fully offset this impact.

To ensure sufficient stock, Under Armour (NYSE 🙂 had to use more expensive air freight in order to transport its products from Asia’s manufacturing hubs.

On Friday, the company stated that its gross margin was down 200 basis point in the third quarter ending March 31. It also said it would suffer from a loss of 240 basispoints due to increased freight expenses.

Under Armour said that its supply chain limitations forced them to lower its orders for the spring-summer 2022. This is because many of its garment factories are just beginning to recover from COVID-19 epidemics, and there’s a shortage in employees.

It was able to beat its revenue forecasts for the third quarter, thanks to strong holiday demand and the higher price of its leggings and hoodies.

In the December 31 quarter, net revenue increased to $1.53 Billion from $1.40 Billion one year prior. Refinitiv polled analyst expecting $1.47 trillion.