×
2 487
Fashion Jobs
PRETTYLITTLETHING
Senior Affiliate Marketing Executive
Permanent · MANCHESTER
BOOHOO
Ecommerce Trading Executive
Permanent · MANCHESTER
ESTEE LAUDER
Clinique - Consultant - Brown Thomas, Dublin - 15 Hours - Part-Time, Permanent
Permanent · Dublin
SHISEIDO
Nars Account Manager - Harvey Nichols London (37.5 Hours)
Permanent · London
ESTEE LAUDER
Clinique - Consultant - m&s Newcastle - 15 Hours - Part Time, Permanent
Permanent · Newcastle upon Tyne
ESTEE LAUDER
jo Malone London - Marketing And Consumer Engagement Director
Permanent · London
AESOP
Retail Consultant | Part-Time, Permanent | Aesop Selfridges Exchange Square, Manchester
Permanent · Central
BOOHOO
Print Sales Account Manager
Permanent · MANCHESTER
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
ESTEE LAUDER
Mac Cosmetics - Business Manager - Mac Stratford2, London - 37.5 Hours / Week - Full Time, Permanent
Permanent · London
HARRODS
Brand Manager
Permanent · LAKESIDE
HARRODS
Uniformed Security Officer
Permanent · LONDON
VF INTERNATIONAL
Senior Distribution Systems Specialist
Permanent · COALVILLE
ESTEE LAUDER
Bobbi Brown, la Mer And Darphin - CRM & Insights Assistant
Permanent · London
HARRODS
Food Supply Manager
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · CAMBRIDGE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
HEAD OFFICE
Delivery & Operations Manager
Permanent · BRACKNELL
BOOHOO GROUP
Product Manager
Permanent · MANCHESTER
DEBENHAMS
CRM Executive
Permanent · LONDON
PRETTYLITTLETHING
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Buying Admin Assistant
Permanent · MANCHESTER
By
Reuters
Published
Feb 11, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Under Armour flags hit to margins, supplies due to COVID-19 disruptions

By
Reuters
Published
Feb 11, 2022

Under Armour Inc on Friday warned that higher transportation costs would squeeze its earnings in the current quarter, as the sportswear maker wrestles with COVID-19-led disruptions to its supply chain.
Shares fell 8.1% to $18.40 as the company flagged reductions to its spring and summer order book due to supply constraints.


Photo: Under Armour



Product availability has been a concern for Under Armour and its rivals, Lululemon Athletica Inc and Nike Inc , as Asian factories that make their clothing are only just recovering from COVID-19 outbreaks and employee shortages.

"We expect many of (supply) headwinds to continue well into fiscal 2023 until longer-than-usual transit times, backlogs and congestion find balance ... and inbound shipping delays subside," said Chief Financial Officer David Bergman on an earnings call.

The pandemic has triggered inflation across the supply chain from labor to raw materials, forcing corporate America to raise prices of everything from burgers to hoodies. However, many companies could still not fully offset the impact and that hit their profits.

Under Armour said gross margin would be down 200 basis points in the current quarter, compared with last year's adjusted gross margin, hurt by a 240 basis points hit from higher freight expenses.

It forecast earnings of 2 cents to 3 cents per share for the quarter ending March 31, which at least four analysts said was below estimates.

The company has been forced to use pricier air freight due to port congestion, as it strives to ensure its shelves are sufficiently stocked, with demand for athletic wear still strong.

However, robust demand and higher prices helped Under Armour post better-than-expected results for the holiday quarter.

Net revenue rose 9% to $1.53 billion, beating estimates of $1.47 billion, according to Refinitiv IBES data. Adjusted earnings per share stood at 14 cents, five cents above expectations.

© Thomson Reuters 2022 All rights reserved.