Under Armour Inc Class A (NYSE: UAA)

Under Armour Inc, the Baltimore-based active wear brand reported net income for the quarter ended Dec. 31 of $110 million, or 23 cents a share, compared with $184.5 million, or 40 cents a share, a year earlier. There were $14 million in restructuring and impairment charges in the quarter, so excluding onetime items; it earned 14 cents a share, beating analysts’ estimates of 7 cents.

Sales overall rose 9 percent to $1.5 billion, which the company attributed to a “solid performance” in its owned and operated stores and a 4 percent growth in e-commerce, which represented 42 percent of its total direct-to-consumer business during the quarter.

The company saw strong demand for its products, while higher prices for hoodies and leggings offset some pandemic-related supply chain disruptions. However, the company noted profit margins may shrink in the current quarter due to freight costs.

The shares of Under Armour Inc were down 8.9% at $18.22 Friday morning.

The stock closed Friday trading down at $17.51, (- $2.50 or -12.49%).

Read the article.... .“Under Armour Earnings Expectations!”

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About Under Armour Inc .....

Under Armour, Inc. engages in the development, marketing, and distribution of branded performance apparel, footwear, and accessories for men, women, and youth.

It operates through the following segments: North America, EMEA, Asia-Pacific, Latin America, and Connected Fitness. The North America segment comprises of U.S. and Canada. The Connected Fitness segment offers digital fitness subscriptions, along with digital advertising through its MapMyFitness, MyFitnessPal, and Endomondo. applications.

The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, MD.

The Main Reasons for Under Armour Inc Fall.....

Under Armour Inc fell the most in almost two years after saying supply-chain disruptions will have “material impacts” on the spring-summer season and potentially beyond.

Reductions in orders as a result of these constraints will lower revenue by about 10 percentage points in the current quarter, the athletic-wear company said on Friday. At the same time, gross margin is projected to fall two percentage points from a year ago due to higher freight expenses and expectations for greater sales of less-profitable products.

Under Armour Inc has been using costly air freight to circumvent bottlenecks and has been pulling back from some wholesale partners to focus on higher-quality sales. On Friday, the company said it expects supply-chain issues will continue to pressure financial results for two more quarters after the current one, or through the end of September.

“We believe these Covid-related supply chain pressures are just a temporary speed bump on our road to continued profitable growth over the long term,” Chief Financial Officer David Bergman said on a conference call with analysts.

For the current quarter, Under Armour sees earnings of 2 cents to 3 cents a share. That would be down from 17 cents a year ago. The company sees revenue growing at a mid-single-digit rate, up from a prior forecast for growth in the low-single digits.

Frisk said management is being cautious in expecting logistics woes to linger as the global supply chain has “twisted upon itself.”

“It is truly systemic,” he said in an interview. “And when those things happen, it takes a while to unravel all of it.”

Summary.....

Under Armour Inc stock had been slowly moving higher since a January 28 annual low of $17.52, though this rally was rejected by the 50-day moving average during Friday's session.

Year-over-year, UAA is down 20.5%.

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