Good Evening. Investors digested a critical report on the strength of the labor market’s recovery, which emphasized still-solid labor market conditions. However, stocks in the US stocks dipped on Friday, ending the week lower. Concerns about the Federal Reserve’s capacity to bring down inflation while sustaining good economic growth resurfaced on Friday, extending sharp losses from the previous session.
The S&P 500 fell 0.57%. The Nasdaq Composite fell 1.40%. The Dow Jones dropped slightly by 0.30%.
With supply chain issues putting pressure on sales for the current fiscal year, Under Armour (UAA) was on course for its largest single-session drop since 2017.
The athletic-wear producer said it anticipates revenue to climb between 5% and 7% for the current fiscal year. Revenue increased by 27% to $5.7 billion in the previous fiscal year.
In a statement, Under Armour said that the company’s current-year forecast “includes approximately three percentage points of headwinds related to our strategic decision to work with our vendors and customers to cancel orders affected by capacity issues, supply chain delays, and emerging COVID-19 impacts in China.”
Under Armour’s latest quarterly statistics showed a 3% increase in revenue to $1.3 billion. Revenue in North America, the company’s largest geographical segment, climbed 4% year over year. In the Asia Pacific, however, sales plummeted 13% on a currency-neutral basis, with ongoing virus-related lockdowns in China dragging on results.
At Closing, UAA fell by 23.79% to $10.89 per share
The online retail business is facing more 52-week lows than expected. Many prominent e-commerce shops are reporting reduced sales as the pandemic-fueled boom fades and shoppers return to real stores, warning that the business is reaching a brick-and-mortar wall.
Last week, Amazon set the tone by posting a 3% dip in online sales in the first three months of the year and projecting only a 3% increase in sales for the current quarter. Its stock dropped the most in a single day since 2006. Every major online store reporting earnings since then has exhibited symptoms of a clicking cooling.
- Wayfair’s stock plunged over 26% yesterday after the company announced that its active customer count had decreased 23.40% year over year.
- Online sales at Bed Bath & Beyond have dropped 18%.
- Following dismal forecasts for the current quarter, Etsy and eBay both saw their stock tumble by double digits yesterday as well.
- Shopify’s stock dropped 15% after the company reported earnings that were significantly lower than expected.
Zoom in: The Q1 e-commerce slump is being attributed to higher pricing and longer delivery times. If it’s any consolation to online retailers, all stocks are being slashed across the board.