American multinational clothes model Under Armour retailer seen in Hong Kong.

Budrul Chukrut | SOPA Images | Lightrocket | Getty Images

Under Armour on Wednesday lower its revenue forecast for the fiscal yr 2023 as extra promotions on its athletic attire ate into margins.

The firm now expects earnings per share for the total yr to return in between 61 cents and 67 cents, down from an earlier information of between 79 cents and 84 cents. Gross margin is predicted to be down 375 to 425 foundation factors, a worsened outlook from the earlier vary of 150 to 200 foundation factors.

In its outlook, the corporate talked about a 2 cent detrimental influence on EPS regarding bills from ongoing litigation. Last week, Under Armour agreed to settle a lawsuit with UCLA for $67.49 million, based on the Associated Press.

Still, Under Armour’s fiscal first-quarter outcomes matched Wall Street expectations.

Here’s what the corporate reported in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:

  • Earnings per share: 3 cents, adjusted, vs. 3 cents anticipated
  • Revenue: $1.35 billion vs. $1.34 billion anticipated

The firm stated income was pushed partially by greater costs. The value of products bought elevated from the identical three months in 2021 to $718.9 million, making up 53.3% of internet income in contrast with 50.5% of internet income the yr prior.

Gross margin for the interval declined 280 foundation factors in contrast with the prior yr. Net revenue earlier than changes was $7.68 million, or 2 cents per share.

This story is creating. Please examine again for updates.


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