Under Armour forecasts its full-year profit to be lower than analysts’ estimates. The sportswear makers’ bottom lines are likely to be impacted by higher transportation costs and renewed COVID-19 curbs in China. COVID led curbs resulted in a 14 per cent decline in the brand’s revenue from the Asia-Pacific region during the quarter ended March 31.
Shipping delays and labor shortages also prevented the brand from getting its hoodies and shoes to stores, forcing it to cancel orders. For fiscal year 2023, Under Armour projected an adjusted per-share profit between 63 cents and 68 cents, below Refinitiv estimates of 83 cents. The brand expects sales to grow between 5 to 7 per cent growth, while analysts expect a 5.4 per cent rise in sales.