Baltimore-based sports apparel firm Under Armour expects 2008 profits to be $76 million to $78 million, a 9.6 percent to 11.9 percent drop from $86.3 million in 2007.
The company announced Wednesday preliminary year-end financial results and said it expects 2008 revenue in the range of $725 million to $726 million, up 19.5 percent to 19.7 percent from $606.6 million in 2007.
Under Armour had previously expected 2008 revenue in the range of $750 million to $765 million and profits in the range of $97.5 million to $104.5 million.
In the fourth quarter of 2008, revenue should be $179 million to $180 million, while income should be $22 million to $24 million, Under Armour said.
The company said fourth-quarter 2008 net revenue were primarily affected by low at-once orders and high cancellations in the U.S. wholesale business and lower online sales, resulting from the weaker retail environment.
The effect on fourth-quarter income from operations and diluted earnings per share was primarily driven by the lower sales volumes. – Andrew Cannarsa
