The sporting goods manufacturer Under Armor has lowered its profit forecast for the current financial year.
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 the 2022-23 fiscal year, which ends in late March, Under Armor expects operating profit to be in the range of $300 million to $325 million (up to approximately $318 million), compared to a previously targeted $375 million to $400 million. Earnings per share are expected 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, revenues 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.
Last week, competitor Adidas also lowered its forecast due to high costs and an expected weakening of consumer sentiment.