WOW UNDER ARMOUR IS AN $11 STOCK<----------
Shocking.
Under Armour slides after supply chain issues contribute to margin woes
May 06, 2022 7:35 AM ETUnder Armour, Inc. (UAA)
Under Armour (NYSE:UAA) slid in early trading after falling short of estimates with its Q1 earnings report.
Wholesale revenue increased 4% during the quarter to $829M and direct-to-consumer revenue was up 1% to $441M. E-commerce sales rose 2%. Owned and operated store revenue growth was flat during the quarter.
YIKES- E commerce up 2% that blows!
North America revenue increased 4% to $841M and international revenue was up 1% to $456M (+3% at a constant currency rate).
Apparel revenue increased 8% to $877M. Footwear revenue fell 4% to $297M. Accessories revenue was down 18% to $97M.
Gross margin decreased 350 basis points to 46.5% of sales, driven primarily by elevated freight expenses.
Looking ahead, UAA guided for revenue growth of 5% to 7% for FY23 reflecting a mid-single-digit growth rate in North America and a low-teens growth rate in the international business. The consensus estimate was for 4% growth. Gross margin is seen falling 150 bps to 200 bps amid supply chain challenges and inflation pressures.
"As global supply challenges and emergent COVID-19 impacts in China eventually normalize, we are confident that the strength of the Under Armour brand coupled with our powerful growth strategy positions us well to deliver sustainable, profitable returns to shareholders over the long-term," noted CEO Patrik Fisker.
OK We May Need a New CEO here....
Shocking.
Under Armour slides after supply chain issues contribute to margin woes
May 06, 2022 7:35 AM ETUnder Armour, Inc. (UAA)
Under Armour (NYSE:UAA) slid in early trading after falling short of estimates with its Q1 earnings report.
Wholesale revenue increased 4% during the quarter to $829M and direct-to-consumer revenue was up 1% to $441M. E-commerce sales rose 2%. Owned and operated store revenue growth was flat during the quarter.
YIKES- E commerce up 2% that blows!
North America revenue increased 4% to $841M and international revenue was up 1% to $456M (+3% at a constant currency rate).
Apparel revenue increased 8% to $877M. Footwear revenue fell 4% to $297M. Accessories revenue was down 18% to $97M.
Gross margin decreased 350 basis points to 46.5% of sales, driven primarily by elevated freight expenses.
Looking ahead, UAA guided for revenue growth of 5% to 7% for FY23 reflecting a mid-single-digit growth rate in North America and a low-teens growth rate in the international business. The consensus estimate was for 4% growth. Gross margin is seen falling 150 bps to 200 bps amid supply chain challenges and inflation pressures.
"As global supply challenges and emergent COVID-19 impacts in China eventually normalize, we are confident that the strength of the Under Armour brand coupled with our powerful growth strategy positions us well to deliver sustainable, profitable returns to shareholders over the long-term," noted CEO Patrik Fisker.
OK We May Need a New CEO here....
FWONA