Under Armour raises annual profit forecast on easing input costs By Reuters

© Reuters. FILE PHOTO: People walk by an Under Armour store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

(Reuters) – Under Armour (NYSE:) lifted its annual profit and margin forecasts on Thursday, helped by easing input and freight costs even as demand for its products slowed, sending the shares of the apparel maker up 4% before the bell.

The company, which had seen a steep rise in production costs during the pandemic, has now started to reap the benefits of freight and raw material costs gradually receding.

Under Armour now expects annual gross margin to be up 120 to 130 basis points, compared to previous expectations of a 100 to 125 basis point increase.

The company expects a profit of 57 cents to 59 cents per share for fiscal 2024, compared with its prior forecast of 47 cents to 51 cents.

Its third-quarter revenue fell to $1.49 billion from $1.58 billion a year earlier. Analysts on an average estimated revenue of $1.50 billion, according to LSEG data.

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