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Under Armour profit to take hit from higher costs, China curbs; shares tank

May 6, 2022

Under Armour Inc forecast full-year profit below estimates on Friday, as the sportswear maker grapples with higher transportation costs and a hit to its business from renewed COVID-19 curbs in China.

Shares of Under Armour (NYSE:UA) tumbled over 21% in premarket trading, as the company also reported a surprise loss and bleak sales in the first three months of the year.

While economies around the world are reopening, a spike in COVID-19 infections in parts of the world such as China has led governments to reinstate strict social restrictions once again, hurting manufacturing operations and retail sales.