Under Armour warns of hit to earnings due to supply chain challenges

Under Armour on Friday warned that higher transportation costs would squeeze its earnings in the current quarter, as the sportswear maker wrestles with COVID-19-led disruptions to its supply chain.

Product availability has been a concern for Under Armour and its rivals, Lululemon and Nike, as Asian factories that make their clothing are only just“We expect many of headwinds to continue well into fiscal 2023 until longer-than-usual transit times, backlogs and congestion find balance … and inbound shipping delays subside,” said Chief Financial Officer David Bergman on an earnings call.

Under Armour said gross margin would be down 200 basis points in the current quarter, compared with last year’s adjusted gross margin, hurt by a 240 basis points hit from higher freight expenses.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves premarket: Under Armour, Zillow, Expedia and othersThese are the stocks posting the largest moves before the bell. Inflation 7.5% Bit coin fixes that up 17.08% in one week
Source: CNBC - 🏆 12. / 72 Read more »

PepsiCo Beats on Fourth-Quarter Earnings, But Warns of Cost PressurePepsiCo beat expectations for fiscal fourth-quarter earnings and revenue, but warned of cost pressures ahead. Where are the Diet Coke advocates ?
Source: nbcchicago - 🏆 545. / 51 Read more »