Under Armour stock has fallen by −1.29 (8.28%) today after the company reported an unexpected loss and sales below Wall Street estimates. This comes as the Under Armour company grapples with global supply chain challenges and lockdowns in China following another wave of Covid-19.
The effect of the loss was multiplied by the athletic apparel retailer issuing guidance that was below the Wall Street estimates.
The stock fell by more than 10% immediately after the news but it has tried to recover by at least 1.7%
Under Armour performance
In the three-month period ended March 31, the athletic apparel retailer posted a loss per share of 1 cent against expected earnings of 6 cents per share.
In terms of revenue, Under Armour made $1.3 billion against an expected revenue of $1.32 billion.
Under Armour stock projections
Under Armour has projected that it shall make 63 cents to 68 cents per share in its fiscal year 2023. This is far below the Wall Street estimates of 86 cents per share.
The current poor performance is being attributed to the disruptions in the global supply chain and the wave of Covid-19 that has hit China resulting in lockdowns. The Chief Executive Officer Patrik Frisk exuded confidence that the retailer shall return to offering “sustainable, profitable returns” once the global supply challenges and current Covid-19 wave in China are brought under control.
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Source: https://invezz.com/news/2022/05/06/under-armour-stock-dips-after-the-company-posted-an-unexpected-loss/