Under Armor cuts profit forecast as costs rise

Adds quarterly earnings details, stock movement

August 3 (Reuters) – Under Armor Inc. UAA.N lowered its full-year profit forecast on Wednesday as its margins were hit by soaring transportation and raw material costs as well as more discounts to lure customers.

COVID-19 surges, labor shortages and the Russian-Ukrainian war have hampered global supply chains and driven up the prices of raw materials such as cotton, squeezing corporate profit margins to a crawl. when they also see growing consumer resistance to price increases. .

Under Armor forecast adjusted earnings of $0.47 to $0.53 per share for fiscal 2023, compared to its previous guidance of $0.63 to $0.68 per share.

Net revenue for the first quarter ended June 30 was flat at $1.35 billion, slightly above analyst estimates of $1.34 billion, according to Refinitiv IBES.

(Reporting by Uday Sampath in Bengaluru; Editing by Aditya Soni)

((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;))

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