Under Armour Shares Fall Amid Supply Chain Issues
Feb 11, 2022 By MarketDepth
Under Armour (NYSE: UAA) shares tumbled Friday despite reporting positive fourth-quarter earnings, as supply chain issues continue to impact its outlook. The company’s management warned investors about reductions in spring-summer 2022 amid the ongoing issues created by the pandemic.
Higher than Expected
The American sports equipment company reported earnings of USD0.14 per share, compared to the expected USD0.07 a share. Revenue amounted to USD1.53 Billion, higher than analysts anticipated 1.47 Billion. Net income totaled USD109.7 Million, compared to the previous year’s USD185.5 Million.
“The final quarter of 2021 demonstrated the power and consistency of Under Armour’s strategic playbook, which allowed us to capitalize on improving brand strength and consumer demand. By staying hyper-focused on operational excellence and serving the needs of athletes, we were able to deliver record revenue and earnings results for the full year.”Under Armour President and CEO Patrik Frisk
The retailer disclosed an outlook for the transition quarter, with sales expected to rise at a mid-single-digit rate, better than its previous outlook of a low-single-digit rate. Furthermore, supply chain delays are capping the amount of spring and summer items the company is able to offer, ultimately affecting its sales.
“Amid a dynamic environment with ongoing COVID-19 impacts and resultant supply chain headwinds, I am proud of how consistently our global teams continue to execute our plan. As we navigate ongoing uncertainty in the marketplace, we remain focused on delivering industry-leading innovations, premium experiences, and empowering those who strive for more. Going forward, I am confident that we are running a stronger company – one that is able to deliver sustainable, profitable growth and value creation for our shareholders over the long term.”Under Armour President and CEO Patrik Frisk