Under Armour: targets exceeded, but FY sales expected to fal

(CercleFinance.com) - On Wednesday Under Armour announced that it had exceeded its own profitability targets for the past quarter, although has also reduced its FY sales forecast due to difficulties in North America.


The sports equipment manufacturer now expects sales to fall by 2% to 4% for FY 2023/2024, to end-March, compared with the "stable to slightly upward" trend previously forecast.

This warning comes as the US group's sales stagnated at $1.6bn in Q2, ending in September.

In particular, revenues from the North American market fell by 2% to $991m.

Net profit for the quarter rose to $109.6m from $86.9m a year earlier, with gross margin improving to 48%, from 45.4% a year earlier.

As a result, the Baltimore-based group has revised upwards its gross margin target for the 2023/2024 financial year, now expected to rise by 100 to 125 basis points instead of 25 to 75 points.

Following these contrasting indications, the share price was expected to be stable at the opening on Wall Street on Wednesday.


Copyright (c) 2023 CercleFinance.com. All rights reserved.