Under Armour, the renowned US clothing retailer, has lowered its profit forecast for FY ’23.
The retailer expects higher promotional activities to eat its margins.
What’s notable here is that the move follows despite the retailer seeing its Q1 earnings match Wall Street expectations.
The first quarter, which ended 30 June 2022, saw Under Armour make a net income of US $ 7.68 million, which was a fall from US $ 59.21 million made a year before.
While apparel revenue slumped by 1 per cent to US $ 868 million in the quarter, footwear revenue rose by 1 per cent to US $ 347 million.
Based on its Q1 results, the retailer has cut its FY ’23 profit outlook and expects adjusted diluted earnings per share of between US $ 0.47 and US $ 0.53.
Previously, the estimated numbers were between US $ 0.63 and US $ 0.68.
However, Under Armour, which is known for manufacturing sportswear, casual apparels and footwear,still expects the year-on-year revenue growth to be somewhere between 5 percent and 7 percent.
There are now also reports of a new CEO getting hired by the end of the year.
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