Lowered expectations due to macroeconomic uncertainty and foreign currency impacts

  • Under Armour lowers sales outlook due to challenging environment
  • Revenue increases 2% to $1.6bn in Q2 2022
  • Wholesale revenue up 4%, direct-to-consumer down 4%
  • Apparel revenue down 2%, footwear up 14%, accessories down 12%
  • Gross margin remains unchanged at 375 to 425 basis point decline

Under Armour has lowered its sales outlook for the year ahead, citing a more challenging retail environment and negative impacts from changes in foreign currency. Despite a 2% increase in revenue to $1.6bn (£1.4bn) in Q2 2022, with wholesale revenue up 4% and ecommerce revenue up 4%, the company now expects growth at a low single-digit percentage rate compared to its previous expectation of 5% to 7%. Apparel revenue fell 2%, footwear increased 14%, and accessories declined 12%. Gross margin remains unchanged at a 375 to 425 basis point decline.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Under Armour’s financial performance in the second quarter of 2022, including revenue growth, sales outlook revision, and the company’s response to the challenging retail environment. It also includes relevant quotes from the interim president and CEO.
Noise Level: 3
Noise Justification: The article provides relevant information about Under Armour’s financial performance and adjustments in their sales outlook, but it lacks in-depth analysis or exploration of the reasons behind the changes and potential long-term consequences.
Financial Relevance: Yes
Financial Markets Impacted: Under Armour’s stock price and other athletic wear companies
Financial Rating Justification: The article discusses Under Armour’s financial performance, including changes in revenue and outlook for the year ahead, which can impact the company’s stock price and potentially affect other athletic wear companies as well.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk