Under Armour cuts annual forecasts as sportswear demand slumps

(Reuters) - Under Armour Inc cut its annual revenue and profit forecasts on Thursday, as the sporting goods company contends with weak demand from consumers hit by decades-high inflation and the impact of a stronger dollar.

After two years of booming sales during the pandemic, sportswear companies have seen their fortunes plummet in the last few months as surging prices of everyday goods force consumers to cut back on discretionary purchases.

Under Armour has increased discounts on its apparel and footwear, sacrificing profit margins in a bid to boost sales.

The company forecast fiscal 2023 net sales to rise in low single-digit percentage, compared with its earlier outlook of a 5% to 7% increase.

Under Armour expects an adjusted profit of 56 cents to 60 cents per share for fiscal 2023, compared with its previous forecast of 61 cents to 67 cents per share.

Net revenue rose 2% to $1.57 billion in the quarter ended Sept. 30, beating analysts' average estimate of $1.55 billion, according to Refinitiv IBES data.

(Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi)