“These trends, which we believe to be temporary, are also expected to impact how [2022] It’s shaping up,” Under Armor CEO Patrik Frisk said on an earnings call with analysts on Friday.
Meanwhile, Adidas on Friday also said its profit fell in the last quarter. The sportswear giant reported a net profit of $327 million in the last quarter, down 38% from the same period last year.
Adidas said the decline was caused by a “challenging market environment” in China, where sales were down 35%, as well as supply chain disruptions.
“Revenues in Greater China are now expected to decline significantly in 2022,” Adidas said. The company’s shares fell 5% on Friday.
Under the sluggish results and forecasts from Armor and Adidas, other major sportswear brands including Nike and Lululemon tumbled. Nike was down 3% and Lululemon was down 7% on Friday. China is a key market for these companies and their supply chain networks also rely heavily on the Asia-Pacific region.
While these brands have raised prices to combat higher costs, they say consumers are still eager to buy their gear.
“The underlying demand for the brand is there. The brand is getting stronger,” said Under Armor’s Frisk.
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