Under Armour Inc forecast annual sales and profit below Wall Street expectations on Tuesday in a sign that stubborn inflation was discouraging shoppers from spending on its athletic clothes and footwear.
As recession fears grow in the United States, cost-conscious consumers have been restricting their spending on discretionary products such as home goods, apparel and electronics to focus more on needs-based goods, even as cloth manufacturers offer discounts.
The apparel maker's results were in contrast to rival Nike Inc and industry peer Lululemon Athletica Inc, who have seen a steady demand for their products in the recent quarter, even as inventory gluts persist.
The company expects fiscal 2024 net sales to be flat to slightly up, compared with analysts expectations of 3.7% growth.
Under Armour also expects diluted earnings per share to be between 47 cents and 51 cents in 2024. Analysts were expecting a profit of 61 cents, according to Refinitiv data.
Shares of the company were down marginally in premarket trade.
(Reporting by Granth Vanaik in Bengaluru; Editing by Dhanya Ann Thoppil and Arun Koyyur)
