Under Armour, sales are plummeting due to supply chain issues. The fourth-quarter earnings continue to below.
The shares fell on Friday irrespective of major efforts. The increased freight expenses are going to weigh down even more. The company had to pay more money for cargo. The supply chain constraints affected the movement. The shipping changes increased. The air cargo continues to get costlier.
The company’s CEO David Bergman is calling it a “Temporary speed bump”. Under Armour’s growth will continue to be agile. The backlogs will persist, and the shipping congestion will continue to subside.
It is going to build a healthier strategy to tackle everything. It is going to build a premium label. It focuses on becoming more like Nike, lululemon, and Kohls.
The stock of the company plummeted to 9%. The earnings per share went down to 7 cents. The company reported a net income of $109.7 million. It was $184.5 million earlier.
The company had a fair growth in the Northern American region by 15%. The international sale is up to 3%. And, the eCommerce sale went up by 4% from last year.
Accounting for the total revenue, apparel sales rose to 18% and footwear by 17%. The accessories fell to 27%. Last year, the sale of accessories and people invested in sunglasses and others. Due to covid, the sale of accessories fell.
Retailers believe that the shares will bounce back. They need to fix the supply chain. The earnings for the period will rise in the range of 2 to 3 cents.
BMO Analyst Siemon Siegel called it a “, they still guided for revenue to be up, suggesting growth even with constraints.”
The company expects a period till May. The company will detail the outlook for the fiscal year. The restructuring plan accounts for $525 to $550 million. Under Armour covered $514 million in pretax charges to date.