Under Armour Shares Plummet as It Reports Steep Net Loss

Shares for Under Armour plummeted 22% on Friday after the athletic sports brand reported a net loss in the transitional quarter ended March 31, 2022, after hitting pandemic-related issues and supply chain headwinds. Under Armour reported a net loss of $60 million in the quarter, with an adjusted loss of $3 million. But revenue was up 3% year-over-year to $1.3 billion. Wholesale was up 4% to $829 million, driven primarily by increases in its distributor and off-price business. Direct-to-consumer business was up 1%, with 2% growth in e-commerce sales and flat results in its owned and operated stores. In its earnings call on Friday, Under Armour president and CEO Patrik Frisk admitted that results “came in lighter than we expected” due to ongoing supply chain challenges and emerging COVID-19 impact in its Asia Pacific business that have restricted store hours and resulted in store closures in China. “These trends, which we believe to be temporary, are also expected to impact how fiscal ’23 is shaping up,” Frisk said. Pressed further on the call by investors, Frisk added that the team is “frustrated” with its current situation, as he believes there is demand for the brand in the marketplace across the world, but current

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