Under Armour: cuts targets, margin falls but stock jumps
(CercleFinance.com) - The US sports equipment manufacturer Under Armour reduced its targets for 2022 on Thursday, although this disappointment was overshadowed by its better-than-expected performance in Q3.
It now expects FY sales growth of 0% to 5%, below a previously announced range of 5% to 7%, due to a "more difficult" environment in the retail market, as well as unfavourable FX factors.
Under Armour reported a 2% increase in Q3 sales to 1.6 billion dollars, although a drop in its gross margin (-5.6 points to 45.4%).
Net profit came in at 87 million dollars, or 20 cents per share, above the consensus of 16 cents.
It also reduced its FY profit forecast range to 56 to 60 cents per share, from 61 to 67 cents previously.
All said, the stock rallied, closing up over 12% after these figures.
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