Shares fell 8.1% to $18.40 as the firm flagged reductions to its spring and summer months purchase e-book thanks to provide constraints.
Merchandise availability has been a worry for Under Armour and its rivals, Lululemon Athletica Inc and Nike Inc , as Asian factories that make their clothes are only just recovering from COVID-19 outbreaks and personnel shortages.
“We hope lots of of (source) headwinds to proceed effectively into fiscal 2023 until eventually for a longer time-than-common transit moments, backlogs and congestion come across equilibrium … and inbound delivery delays subside,” reported Chief Economical Officer David Bergman on an earnings phone.
The pandemic has activated inflation across the provide chain from labor to raw products, forcing company America to raise charges of almost everything from burgers to hoodies. Nonetheless, lots of businesses could continue to not completely offset the influence and that hit their earnings.
Beneath Armour mentioned gross margin would be down 200 basis points in the current quarter, in contrast with previous year’s modified gross margin, hurt by a 240 basis factors strike from greater freight charges.
It forecast earnings of 2 cents to 3 cents per share for the quarter ending March 31, which at least four analysts mentioned was underneath estimates.
The business has been forced to use pricier air freight owing to port congestion, as it strives to assure its shelves are sufficiently stocked, with desire for athletic put on however sturdy.
Nonetheless, robust desire and better prices served Beneath Armour article better-than-predicted final results for the holiday break quarter.
Internet earnings rose 9% to $1.53 billion, beating estimates of $1.47 billion, according to Refinitiv IBES details. Adjusted earnings per share stood at 14 cents, five cents higher than expectations.