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Under Armour suffered a net loss in the fourth quarter of the 2022 fiscal year and posted a 2023 financial outlook that appeared less than impressive for investors.
After the numbers were released on Friday, its stock price dropped about 25%.
- The company posted a net loss of about $60 million and an adjusted net loss of $3 million.
- But total revenue did increase 3% compared with the same period in 2021, totaling $1.3 billion.
- Apparel revenue rose 8%, for a total of $877 million — though footwear sales dropped 4% for a total of $297 million.
Under Armour expects revenue to increase 5% to 7% in fiscal 2023. The company projects to reach $375 million to $400 million in operating income, compared to a baseline figure of $424 million.
The sports apparel giant attributed the underwhelming numbers to factors such as the pandemic, supply chain issues, and inflation.
Global Outlook
In North America, Under Armour saw revenue increase 4% to $841 million.
In Asia-Pacific, however, revenue dropped 14% while Latin America saw a 6% drop. In total, international sales only rose 1% to $456 million.
