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The gross profit fell 9.4% Y/Y to $713.8 million, and the gross margin contracted 560 basis points Y/Y to 45.4%.
The operating margin contracted 350 basis points to 7.6%, and operating income for the quarter declined 30.6% to $119 million.
The company held $868 million in cash and equivalents as of September 30, 2022. Inventory was $1.1 billion as of September end.
Under Armour repurchased 26 million shares for $350 million as of September under its two-year, $500 million program approved in February 2022.
Outlook: Under Armour sees FY23 revenue to grow at a low single-digit percentage rate versus its previous expectation for 5% – 7% due primarily to a more challenging retail environment and additional negative impacts from changes in foreign currency.
The company reduced its FY23 adjusted EPS outlook to $0.44 – $0.48 from the prior view of $0.47 – $0.53.
Price Action: UA shares are trading higher by 12.64% at $7.04 on the last check Thursday.
