Under Armour (NYSE:UAA) shares were stuck on Friday despite the retailer reporting fiscal fourth-quarter earnings and sales ahead of analysts’ estimates, as a cloudy outlook hampered by lingering supply chain constraints overshadowed those results.
The company also warned that heightened freight expenses will weigh on profit margins in the coming months. Under Armour has said previously that it’s been paying up for more expensive air cargo to move goods from overseas.
Said CEO Patrik Frisk, "As we navigate ongoing uncertainty in the marketplace, we remain focused on delivering industry-leading innovations."
Under Armour reported net income of $109.7 million, or 23 cents a share, compared with $184.5 million, or 40 cents a share, a year earlier. Excluding one-time items, it earned 14 cents a share, beating analysts’ estimates for 7 cents.
Revenue grew to $1.53 billion from $1.4 billion a year earlier. That topped analysts’ expectations for $1.47 billion.
Net revenue in North America rose 15%, while international sales were up 3%.
Within total revenue, apparel was up 18%, footwear grew 17%, however, accessories tumbled 27%.
A year earlier, Under Armour saw accessories sales spike as consumers purchased baseball gloves, water bottles and sunglasses for outdoor activities during the COVID pandemic. The brand also saw a surge in its face mask sales.
UAA shares have yet to move from Thursday’s closing perch of $20.01.
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