UAA - Under Armour slides after supply chain issues contribute to margin woes

Under Armour (NYSE:UAA) slid in early trading after falling short of estimates with its Q1 earnings report. Wholesale revenue increased 4% during the quarter to $829M and direct-to-consumer revenue was up 1% to $441M. E-commerce sales rose 2%. Owned and operated store revenue growth was flat during the quarter. North America revenue increased 4% to $841M and international revenue was up 1% to $456M (+3% at a constant currency rate). Apparel revenue increased 8% to $877M. Footwear revenue fell 4% to $297M. Accessories revenue was down 18% to $97M. Gross margin decreased 350 basis points to 46.5% of sales, driven primarily by elevated freight expenses. Looking ahead, UAA guided for revenue growth of 5% to 7% for FY23 reflecting a mid-single-digit growth rate in North America and a low-teens growth rate in the international business. The consensus estimate was for 4% growth. Gross margin is seen falling 150 bps to

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Under Armour slides after supply chain issues contribute to margin woes