There is no letup in sight to the supply chain troubles plaguing retailers and brands. At Under Armour, the company is working with vendors and customers to cancel planned orders affected specifically by supply chain delays, capacity issues and “emergent COVID-19 impacts in China,” where the pandemic has brought Shanghai to a standstill this year and disrupted other cities, including Bejing.
Supply chain is also weighing on Under Armour’s profitability, with the company projecting margins to be smaller by 150 to 200 basis points compared to last year in part because of freight and product inflation.
