The interior of an Under Armour store is seen on November 03, 2021 in Houston, Texas.
Brandon Bell | Getty Images
Under Armour on Friday reported an unexpected loss and sales below analysts’ estimates as the company grappled with global supply chain challenges and Covid lockdowns in China.
The athletic apparel retailer also issued guidance that came in below Wall Street estimates. Its shares fell more than 10% in premarket trading on the news.
Here’s how the company did in the three-month period ended March 31, compared with what Wall Street was anticipating, based on a Refinitiv survey of analysts:
- Loss per share: 1 cent adjusted vs. earnings of 6 cents expected
- Revenue: $1.3 billion vs. $1.32 billion expected
Under Armour reported a net loss for the quarter of $59.6 million, or 13 cents per share, compared with net income of $77.8 million, or 17 cents a share, a year earlier.
Excluding one-time items, it lost a penny per share. Analysts had been looking for adjusted earnings per share of 6 cents.
Sales grew to $1.3 billion from $1.26 billion a year earlier. That missed estimates for $1.32 billion.
For its fiscal year 2023, Under Armour is projecting to earn between 63 cents and 68 cents per share on an adjusted basis, which is below analysts’ expectations for 86 cents.
Chief Executive Officer Patrik Frisk said that the brand should return to delivering “sustainable, profitable returns” as global supply challenges and emerging Covid-19 impacts in China normalize.
Find the full financial release from Under Armour here.
This story is developing. Please check back for updates.