UAA - Why Under Armour Stock Crashed Today
Shares of Under Armour (NYSE: UAA) (NYSE: UA) fell 23.8% on Friday after the athletic apparel maker posted an unexpected loss and issued a tepid full-year profit forecast.
Under Armour's revenue rose 3% year over year to $1.3 billion in the quarter ending on March 31. Its results were dampened by coronavirus-related lockdowns in China, which led sales in its Asia-Pacific region to fall by 14%.
Supply chain disruptions made it impossible for Under Armour to obtain the inventory it needed to satisfy the demand for its products among consumers. Higher shipping costs further dented the company's profitability. The company's gross margin , in turn, declined by 3.5 percentage points to 46.5%. At the same time, its selling, general, and administrative expenses rose by 16%.
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Why Under Armour Stock Crashed Today