The company attributed higher marketing spend, negative currency effects and costs related to ongoing litigation when it reported its fiscal first quarter results on Wednesday. For 2022/23 (ending March), Under Armor expects an operating result of 300 to 325 million US dollars (up to around 318 million euros), compared to previously announced 375 to 400 million dollars. The company expects earnings per share to be in the range of $0.61 to $0.67, compared to the original guidance of $0.79 to $0.84. The sales forecast remained unchanged.
In the first quarter, revenue stagnated at $1.35 billion, while profits fell from a good $59 million to around $7.7 million due to rising freight costs, higher marketing expenses and negative currency effects. Competitor adidas also lowered its forecast last week due to high costs and an expected weakening of consumer sentiment.
Under Armor shares temporarily gained 1.41 percent to $9.33.
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