Tripped-up supply chains and a coronavirus surge in China are causing headaches for top athletic brands
Under Armour tumbled 25% Friday after the company posted a $60 million loss during its most recent quarter due to supply chain delays and recent Covid-19 lockdowns in China.Chinese authorities imposed a lockdown in Shanghai, China's financial hub, in late March following a surge in coronavirus cases. Although the government started to lift some restrictions last month, more than 8 million residents are still banned from leaving their residential compounds.
The sportswear giant reported a net profit of $327 million last quarter, down 38% from the same stretch a year ago.Adidas said the decline was caused by a"challenging market environment" in China, where sales fell 35%, as well as supply chain disruptions."Revenues in Greater China are now expected to decline significantly in 2022," Adidas said. The company's stock fell 5% Friday.
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