Under Armour Inc.’s growth disappointed in the most recent quarter, referred to as a “transitional” one as the company changes its fiscal year.
“These trends, which we believe to be temporary, are also expected to impact how fiscal ’23 is shaping up,” the CEO said.
Gross margins decreased 350 basis points to 46.5 percent of sales, driven mostly by higher freight expenses amid the global supply chain back up, while higher expenses and restructuring and impairment charges also weighed on the quarter.Revenues inched up 3.5 percent to $1.3 billion from $1.26 billion a year ago. Wholesale sales grew 4 percent to $829 million as the brand’s direct-to-consumer revenues increased to $441 million.
“The engine that makes this model work most efficiently is profitable top-line growth,” he said “This is my number-one priority as CEO. We believe our direct-to-consumer, footwear, women’s and international businesses will drive this growth over the long term. Revenues this year are expected to rise 5 percent to 7 percent with gross margins down 150 to 200 basis points. Adjusted earnings per share are slated to come in at 63 cents to 68 cents, with the top end of that range being on par with the comparable period a year earlier.But Under Armour still has its believers — and it certainly has company when it comes to navigating a tough landscape.
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