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The company also reported bleak quarterly sales that sent its Class A shares tumbling 10% in premarket trading, even as its annual revenue forecast came in largely above expectations.
While economies around the world are reopening, a spike in COVID-19 infections in some parts of the world such as China has led governments to reinstate strict social restrictions once again, hurting store traffic for retailers.
The curbs have impacted sales at Under Armour (NYSE:UA), which reported a 14% fall in revenue from the Asia-Pacific region in the quarter ended March 31, overshadowing a 4% growth in its key North American market.
German sportswear maker Adidas (OTC:ADDYY) also trimmed its 2022 targets on Friday after its quarterly sales slumped due to COVID-related curbs in Greater China.
Production issues in Asian factories – a major manufacturing hub for several Western clothing brands – coupled with shipping delays and labor shortages have also pressured Under Armour, forcing it to cancel orders.
U.S. sportswear giant Nike (NYSE:NKE) in March said transit times were stretched in North America, hurting its supply chain.
Baltimore, Maryland-based Under Armour projected an adjusted profit between 63 cents and 68 cents per share for fiscal year 2023, below analysts’ average estimate of 83 cents per share, according to Refinitiv IBES data.
It expects sales to grow between 5% and 7% in the year, while analysts expect a 5.4% increase.
Net revenue rose to $1.30 billion in the reported quarter from $1.26 billion in the same period a year earlier, missing expectations of $1.32 billion.
