Under Armour (NYSE:UAA) on Monday reported a sales decline of 23% during its first quarter as its business took a blow from the coronavirus pandemic and its stores were forced shut, freezing its turnaround plans.
The athletic apparel company said it plans to cut about $325 million in operating costs in 2020 to help it weather the crisis, including by temporarily laying off some retail employees.
Under Armour reported a net loss of $589.7 million, or $1.30 per share, compared with a profit of $22.5 million, or five cents per share, a year earlier.
Excluding one-time charges, the company lost 34 cents per share.
Under Armour said it expects to report $475 million to $525 million in pretax restructuring costs this year as it looks to revive its business.
During the first quarter, it recorded $436 million in restructuring and impairment charges.
Net revenue fell 23% during the first quarter, to $930.2 million from $1.20 billion. Under Armour said roughly 15 percentage points of the decline stemmed from the COVID-19 crisis.
Apparel sales also dropped 23%, to $598 million, while footwear revenue was down 28% to $210 million and accessories revenue declined 17% to $68 million.
Analysts had been calling for the company to report an adjusted net loss of 19 cents per share, on revenue of $949 million. However, it is difficult to compare reported earnings to analyst estimates for Under Armour’s first quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.
UAA shares dropped 83 cents, or 8.4%, to $9.11
