(CercleFinance.com) – Under Armor opened higher on the New York Stock Exchange on Wednesday morning, the prospects of good cost control offsetting the warning issued by the sports equipment manufacturer on its profit margins.
The American group is now counting on a decline of between 3.75 and 4.25 points in its gross margin over the whole of the year, instead of a previous forecast of between 1.50 and two points.
The manufacturer of sneakers and sportswear justifies its caution by its more intense use of promotional offers as well as by the strength of the dollar, which penalizes its international sales.
The Baltimore-based company also anticipates an operating profit of 300 to 325 million dollars, and no longer 375-400 million dollars as before.
The only encouraging point is that the group expects stable spending over its entire financial year, in particular thanks to strict control of its investments.
In its first fiscal quarter, ending at the end of June, its gross margin contracted by 2.80 points to 46.7%, in particular due to the increase in the cost of transporting goods.
Its operating profit came to 34 million dollars, against 121 million a year earlier, on the basis of a turnover that remained stable at 1.3 billion.
Following this publication, the title rose by 0.4% at the start of the session on Wall Street.
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