An Under Armour store front is seen on November 04, 2019 in Sunrise, Florida.
Joe Raedle | Getty Images
Under Armour shares plummeted Monday morning after the company reported sales that missed analysts’ estimates during the holiday quarter.
Providing its 2020 outlook, Under Armour also said it expects the coronavirus outbreak in China to lower sales by roughly $50 million to $60 million during the fiscal first quarter.
The company is also embarking on a restructuring plan, which among other things could entail not opening its New York City flagship location, Under Armour said. It said it is considering $325 million to $425 million in estimated pre-tax charges for 2020, including about $225 million to $250 million related to not opening the store.
It shares sank as much as 17% in premarket trading on the news.
Here’s how Under Armour did for the quarter ended Dec. 31, compared with what analysts were expecting, based on a poll by Refinitiv:
- Earnings per share: 10 cents, adjusted, vs. 10 cents expected
- Revenue: $1.44 billion vs. $1.47 expected
This notably markets the first quarter without founder Kevin Plank as CEO. Patrik Frisk succeeded Plank on Jan. 1. Plank remains executive chairman of Under Armour and brand chief.
As of Monday’s market close, Under Armour’s stock has fallen about 1.5% this year. The company has a market cap of about $9.2 billion.
This is a developing story. Please check back for updates.