Why Under Armour (UA) Shares Are Sliding Today - Under Armour (NYSE:UA)

Under Armour Inc UA shares are down Tuesday morning post fourth-quarter results. UA reported fourth-quarter FY23 sales growth of 8% year-on-year to $1.40 billion, beating the consensus of $1.36 billion.
Wholesale revenue increased 10% Y/Y to $909 million, and direct-to-consumer revenue grew 3% to $454 million.
Apparel revenue climbed 1% Y/Y, Footwear increased 27%, while Accessories revenue decreased 1%.
Gross profit rose 0.3% Y/Y to $606.9 million, and the gross margin contracted 310 basis points Y/Y to 43.4%.
Operating margin for the quarter was 2.5%, and operating income for the quarter was $35.3 million versus a loss of $(45.9) million last year.
The company held $712 million in cash and equivalents as of March 31, 2023. Inventory was $1.2 billion.
The company’s adjusted EPS was $0.18, beating the consensus of $0.15.
Outlook: Under Armour sees FY24 revenue to be flat – up slightly. UA sees FY24 EPS of $0.47 - $0.51. It expects FY23 gross margin to be up 25 – 75 basis points.
Price Action: UA shares are trading lower by 5.37% at $7.40 premarket on the last check Tuesday.

Why Under Armour Shares Are Sliding Today