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Under Armour’s shares dropped more than 10 percent on Monday after the company said the COVID-19 crisis caused sales of sneakers and other athletic gear to fell more sharply than expected. Store closures in March stopped Under Armour’s growth this year in its tracks, leading sales to drop 23-percent to $930 million in the quarter …
Under Armour’s shares dropped more than 10 percent on Monday after the company said the COVID-19 crisis caused sales of sneakers and other athletic gear to fell more sharply than expected.
Store closures in March stopped Under Armour’s growth this year in its tracks, leading sales to drop 23-percent to $930 million in the quarter ended March 31. On a Monday conference call, exectuves warned that revenues during the current quarter could drop between 50 and 60 percent as stores remain shuttered.
The company reported a $589.7 million loss compared with a $22.5 million profit a year ago. Sales in North America, the company’s largest regions, fell 28 percent to $609 million in the quarter.
“During the first quarter, our results in January and February were tracking well to our plan. Since mid-March, as the pandemic accelerated dramatically in North America and [Europe, Middle East and Africe] and retail store closures ensued, we’ve experienced a significant decline in revenue across all markets,” Chief Executive Patrick Frisk said in a statement.
Shares of the Baltimore-based company were recently off 9.1 percent at $9.07 in early Monday trades.
Sales of athletic wear appears to be one of the few bright spots in retail sales during the pandemic, but Under Armour had been struggling even before the virus hit after a management shake-up last year resulted in founder Kevin Plank stepping down as CEO in October.
