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Under Armour forecast a steeper annual decline in revenue on Friday, as the athletic apparel maker struggles with weak consumer spending amid macroeconomic uncertainty in its key North American market.
Shares of the company were down about 5 percent before the bell.
Persistent inflation and economic uncertainty have forced consumers to curb discretionary spending on apparel, footwear and accessories, pressuring retailers and brands as they try to raise prices and cut discounts in a market highly dependent on promotions.
Net revenue in its North America segment, a major revenue contributor, fell 9 percent to $609.8 million in the quarter ended June 30.
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The company expects full-year revenue to decline by mid-single-digit percentage, compared with its prior target of a “slight decline”.
By Sanskriti Shekhar
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Under Armour Sees Another Weak Year as North America Struggles, Shares Slump
Founder Kevin Plank, who returned as CEO in 2024, outlined a plan that involved reducing about a fourth of the company’s product lines and shifting to higher-priced items in sports categories.
