Under Armour Inc., cut its full-year revenue forecast, citing weaker demand in its home market of North America in the second half of the fiscal year.
The athletic-goods maker had a little increase in revenue, from flat to 4 per cent, but kept its profit guidance because of the strength of its second-quarter profitability.
Despite an increase in overseas sales, North American revenue for the quarter ending 30th September decreased by 2 per cent to US $ 991 million.
Chief Executive Officer Stephanie Linnartz is leading Under Armour through a transformation. She has stated that 2023 will be a ‘building year’ for the company as it resets inventory levels and realigns around new strategic goals, such as womenswear and footwear.
Over the past few quarters, Under Armour and its sportswear competitors have been using discounts to clear off excess inventory in order to make room on their shelves for new products. For the quarter, inventory increased 6 per cent to US $ 1.14 billion, somewhat less than analysts had predicted.
