(CercleFinance.com) – The American sports equipment manufacturer Under Armor reduced its objectives for 2022 on Thursday, a disappointment however eclipsed by its better than expected performance in the third quarter.
The Baltimore group now says it expects annual revenue growth of between 0% and 5%, compared to a range of 5% to 7% previously announced.
He justifies his caution by a ‘more difficult’ environment on the distribution market, as well as by unfavorable effects linked to exchange rate fluctuations.
For the third quarter, Under Armor reported sales up 2% to $1.6 billion, but also a decline in gross margin, which fell 5.6 points to reach 45.4%.
Here again, the sporting goods manufacturer evokes negative currency effects, but also a more frequent use of promotional offers and an increase in its logistics costs.
Its net profit stood at 87 million dollars, or 20 cents per share while the consensus was for 16 cents.
The group also cut its full-year profit forecast and now expects earnings per share to be between 56 and 60 cents from 61 to 67 cents previously.
The action gained 13.5% on the New York Stock Exchange after these figures.
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