Under Armour Stock Slides Following Q1 Earnings, Revenue Miss

Trade Under Armour Shares Your Capital Is At Risk
Analyst Team
Updated: 6 May 2022

Key points:

Under Armour (NYSE: UAA) stock has declined just under 9% in premarket action after it reported first-quarter earnings.


The sports equipment and apparel company reported an adjusted loss per share of 1 cent on revenue of $1.3 billion. Analysts expected the company to report earnings per share of 6 cents on revenue of $1.32 billion.

Revenue rose 3% compared to the prior year, while gross margin decreased 350 basis points to 46.5% compared to the previous year, driven primarily by elevated freight expenses.

Also Read: What Do Quarterly Earnings Mean for Investors?

“Having successfully executed a multi-year transformation and after delivering a record year in 2021 – we are continuing to serve the needs of athletes amid an increasingly more uncertain marketplace,” said Under Armour President and CEO Patrik Frisk.

For fiscal 2023, Under Armour revenue is expected to grow 5% to 7% versus the comparable baseline period of $5.7 billion. This reflects a mid-single-digit growth rate in North America and a low-teens growth rate in the international business a includes approximately headwinds related to the company's “strategic decision” to work with vendors and customers to cancel orders affected by capacity issues, supply chain delays, and emergent COVID-19 impacts in China.

The company sees adjusted earnings per share for fiscal 2023 between $0.63 and $0.68.

“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,” added Frisk.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .