Under Armour reported an 8.9 percent revenue increase to $1.53 billion in the final period as operating income improved 54 percent to $86.1 million. The company spent an estimated $200 million on marketing during the holiday season quarter. Full year revenues rose 27.0 percent to $5.68 billion as operating income came in at $486.3 million. In North America, Q4 operating income increased 9.1 percent to $243,395,000 as period revenues jumped 15.1 percent to more than $1.06 billion. For 2021, Under Armour’s North American operating profit soared 105 percent to $972,093 on 29.4 percent topline growth to $3.81 billion.

While pointing out record full-year revenues and a record year-end cash-on-hand total of $1.7 billion, Under Armour CEO Patrik Frisk said the company remains “both confident and cautious in this operating environment.”

But market concerns over the brand’s supply chain woes possibly lingering into the summer instead of ending sometime this spring sent UAA shares down more 3.6 percent before Wall Street’s opening bell on Friday and finished the trading session down 12.5 percent to close at $17.51.

The company’s present quarter, ending March 31, is considered a transition period since Under Armour’s fiscal year 2023 will commence on April 1, leaving no fiscal year 2022. The current outlook for the transition period now calls for operating income of $30-35 million on a revenue increase in the mid-single digits versus prior guidance of a low-single digit gain. The projection includes revenue headwinds related to reductions in Under Armour’s Spring/Summer 2022 wholesale order book due to supply constraints related to ongoing pandemic impacts. Longer-than-usual transit times, backlogs, and higher freight and logistics costs are predicted to continue into fiscal year 2023, but Under Armour senior executives say the company will be both cautious and agile as it has been thus far. To protect the brand’s premium DTC business and the company’s top wholesale accounts, senior executives have already worked with vendors to understand capacity issues and cancel purchase orders for production and subsequently with customers to terminate sales orders to customers to avoid having products being delivered late. Under Armour, meanwhile, intends to raise some prices this year, but the approach will be more surgical than across-the-board.

CFO Dave Bergman told analysts that Under Armour will spend more on airfreight during the current transition quarter and for the first two quarters of fiscal year 2023 and that factor will impact gross margins, but the issue should subside in the second half of fiscal year 2023.

Under Armour has lowered the cost range of its 2020 restructuring plan to a range of $525-550 million from a previous $525-575 million and has recognized $514 million in pre-tax charges to date. Of that total, $138 million was cash-related and $376 million in charges were non-cash-related. Any remaining charges related to the plan will be taken by the end of first quarter 2023.

As for additional details about Q4 and fiscal 2021 results, Under Armour’s annual apparel sales rose 33.3 percent to $3.84 billion with the segment’s fourth quarter results driven by training and outdoor; footwear sales improved 35.3 percent to $1.26 billion and were 17 percent higher in the final period on strength in running and training; and accessories sales were 11.5 percent higher at $461.9 million but down 27 percent in the fourth quarter on planned lower sales of sports masks. Under Armour’s annual licensing revenues, meanwhile, grew 6.5 percent in 2021 to $112.6 million.