Aug 7 (Reuters) – 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% 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% to $609.8 million in the quarter ended June 30.
The company expects full-year revenue to decline by mid-single-digit percentage, compared with its prior target of a “slight decline”.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Leroy Leo)
