Down Double Digits After Reporting Earnings, What's Next for Under Armour?
Under Armour's (NYSE: UA) (NYSE: UAA) latest earnings report disappointed investors, who have sent shares down nearly 20% since the announcement. Fourth quarter adjusted earnings of $0.10 per share were in line with analysts' consensus estimate. Revenue in the quarter was $1.4 billion, falling just shy of expectations, though the top line did increase 1% for full-year 2019. The company blamed the weakness on continued high promotional activity and challenges in North America.
Looking ahead to 2020, management is guiding to a low single-digit decline for revenue, driven by a mid-to-high single-digit decrease in the North American segment. The guidance includes an estimated negative impact of $50 million to $60 million on revenue due to the coronavirus outbreak, and the company is assessing potential restructuring charges of $225 million to $250 million related to shelving plans to open a New York City flagship store in 2020.
Image source: Under Armour.
Source Fool.com
