Under Armour (NYSE: UAA) presented positive earnings results on Wednesday but opted to lower its profit forecast for the fiscal year 2023 as it continues to use money on promotions of its athletic apparel. Additionally, the retailer’s margins are set to experience a rough patch as it increases discounts to make up for plummeting demand.
The sport equipment company reported earnings of USD0.03 per share, compared to the expected USD0.03 a share. Revenue amounted to USD1.35 Billion, higher than analysts anticipated USD1.34 Billion.
“We delivered our quarter, are holding our full-year revenue outlook, and remain bullish on our brand strength while we navigate the current environment,” said Under Armour Interim President and CEO Colin Browne. “Our relentless approach of delivering groundbreaking innovation will continue to manifest through 2022 and beyond as we work to unleash the full potential of the Under Armour brand.”
According to the company, revenue was mostly due to higher prices. Its North American revenue throughout the quarter was flat year over year at USD909 Million, meanwhile international revenue fell 3.3% to USD431 Million.