UNDER Armour cut its annual revenue and profit forecasts on Thursday (Nov 3), as the sporting goods company contends with weakening demand from consumers ahead of the crucial holiday shopping season and a stronger US dollar.

After two years of booming sales during the pandemic, sportswear companies have seen their fortunes plummet in the last few months as decades-high inflation forces consumers to cut back on discretionary purchases.

Larger rivals such as Nike and Adidas have also warned in the last few weeks of a hit to their holiday season business due to weakening demand.

“While we anticipate the immediate macroeconomic backdrop to stay uncertain - we are taking a balanced approach to mitigate near-term pressures,” Under Armour’s interim chief executive officer, Colin Browne, said.

The Baltimore-based company has been increasing discounts and promotions on its apparel and footwear in a bid to pull in more cost-conscious customers and compete with rivals.

That strategy helped Under Armour boost its net revenue by 2 per cent to US$1.57 billion in the quarter ended Sep 30, beating analysts’ average estimate of US$1.55 billion, according to Refinitiv IBES data.

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The company’s shares, which have lost two-thirds of their value this year, rose about 2 per cent in premarket trading.

Under Armour forecast fiscal 2023 net sales to rise in low single-digit percentage, compared with its earlier outlook of a 5 per cent to 7 per cent increase.

It expects an adjusted profit of 56 cents to 60 cents per share for fiscal 2023, compared with its previous forecast of 61 cents to 67 cents per share. REUTERS