The US sporting goods supplier Under Armor Inc. closed the second quarter of the 2022/23 financial year with a small increase in sales. Although the profit fell well short of the corresponding level of the previous year, CEO Colin Browne was satisfied with the current results overall: the figures were “in line with the company’s expectations”, he explained in an interim report published on Thursday. However, because the management also expects “uncertain” macroeconomic conditions for the foreseeable future, it has revised its annual forecasts downwards.
For the quarter ended September, consolidated revenue increased 1.8 percent (+4.9 percent at constant currency) to $1.57 billion (EUR 1.62 billion). In North America, revenue fell 2.3 percent to $1.01 billion, but growth in international business was strong enough to more than offset the decline.
Revenues in the EMEA region, which includes Europe, the Middle East and Africa, increased by 8.9 percent (+20.4 percent at constant currency) to USD 262.7 million, and in the Asia-Pacific region by 6.5 percent percent (+13.7 percent at constant currency) to $225.7 million and in Latin America by 3.2 percent (+4.0 percent at constant currency) to $58.2 million.
Extensive discounts and higher freight costs, as well as one-off charges and negative currency effects, however, meant that profits shrank significantly. Operating income was $119.4 million, down 30.6 percent from the same period last year, and net income for the quarter was down 23.4 percent, to $86.9 million.
The company also announced its updated guidance for the fiscal year ended March 31. It now only anticipates revenue growth of a “low single-digit percentage,” after previously expecting an increase of five to seven percent. The target range for operating income was lowered from $300-325 million to $270-290 million, diluted earnings per share are now expected to be $0.56-0.60 instead of $0.61-0.67 reach US dollars.