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.
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.