Under Armour Lowers Profit Targets for Year

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Under Armour said that it had higher than planned promotions in the latest quarter.



Under Armour Inc.

UA 4.55%

lowered its profit targets for its fiscal year, saying the price markdowns and higher freight costs that ate into quarterly earnings would continue to weigh on its results.

The Baltimore company said it still expects its revenue to grow about 5% to 7% for the fiscal year that started April 1 but the higher costs would leave its operating income between $300 million and $325 million, compared with its prior goal of $375 million to $400 million.

The company now expects adjusted earnings per share for the full year to come in between 47 cents and 53 cents, down from its May forecast range of 63 cents to 68 cents.

Like many apparel retailers, Under Armour has been faced with supply-chain snarls and shifting consumer spending this year. After saying in May that demand was strong and it would seek to raise prices, the company said Wednesday that it had higher than planned promotions in the quarter ended June 30.

Under Armour reported quarterly net income of $7.7 million, or 2 cents a share, down from $59.2 million a year ago. Revenue was flat at $1.35 billion. Analysts expected a profit of 3 cents a share on $1.34 billion in revenue, according to estimates compiled by


Inventory was up 8% to $954 million.

The company is searching for a permanent chief executive after

Patrik Frisk

stepped down in May and was replaced on an interim basis by

Colin Browne.

Under Armour shares fell nearly 50% from when Mr. Frisk began the role in early 2020 to when his departure was announced.

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Write to Alex Harring at alex.harring@wsj.com

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