UNDER ARMOUR on Friday (May 6) forecast full-year profit below Wall Street estimates, as the sportswear maker grapples with higher transportation costs and a hit to its business from renewed Covid-19 curbs in China.

The company also reported bleak quarterly sales that sent its Class A shares tumbling 10 per cent in premarket trading, even as its annual revenue forecast came in largely above expectations.

While economies around the world are reopening, a spike in Covid-19 infections in some parts of the world such as China has led governments to reinstate strict social restrictions once again, hurting store traffic for retailers.

The curbs have impacted sales at Under Armour, which reported a 14 per cent fall in revenue from the Asia-Pacific region in the quarter ended Mar 31, overshadowing a 4 per cent growth in its key North American market.

German sportswear maker Adidas also trimmed its 2022 targets on Friday after its quarterly sales slumped due to Covid-related curbs in Greater China.

Production issues in Asian factories - a major manufacturing hub for several Western clothing brands - coupled with shipping delays and labour shortages have also pressured Under Armour, forcing it to cancel orders.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

US sportswear giant Nike in March said transit times were stretched in North America, hurting its supply chain.

Baltimore, Maryland-based Under Armour projected an adjusted profit between 63 cents and 68 cents per share for fiscal year 2023, below analysts' average estimate of 83 cents per share, according to Refinitiv IBES data.

It expects sales to grow between 5 per cent and 7 per cent in the year, while analysts expect a 5.4 per cent increase.

Net revenue rose to US$1.30 billion in the reported quarter from US$1.26 billion in the same period a year earlier, missing expectations of US$1.32 billion. REUTERS