Under Armour: shares sink after fourth-quarter loss
(CercleFinance.com) - Under Armour reported a loss in its fourth quarter, due to "demand challenges," prompting the share to fall by almost 18% to its lowest level in two years on Tuesday.
The Baltimore, Maryland-based company - which makes athletic performance apparel and footwear - said its net loss reached 15 million dollars in the past quarter, compared with a profit of 4.2 million dollars in the same period a year ago.
Revenue rose by 4%, to 1.4 billion dollars, while gross margin increased 230 basis points to 47.35%, driven primarily by pricing, including lower discounts.
But chief executive Patrik Frisk said that he was not satisfied with these quarterly results.
"Ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable, profitable growth over the long-term," the CEO said.
Regarding the coronavirus outbreak in China, the company's initial 2020 outlook currently includes an estimated negative impact of approximately 50 million dollars to 60 million dollars in first-quarter 2020 sales.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Baltimore, Maryland-based company - which makes athletic performance apparel and footwear - said its net loss reached 15 million dollars in the past quarter, compared with a profit of 4.2 million dollars in the same period a year ago.
Revenue rose by 4%, to 1.4 billion dollars, while gross margin increased 230 basis points to 47.35%, driven primarily by pricing, including lower discounts.
But chief executive Patrik Frisk said that he was not satisfied with these quarterly results.
"Ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable, profitable growth over the long-term," the CEO said.
Regarding the coronavirus outbreak in China, the company's initial 2020 outlook currently includes an estimated negative impact of approximately 50 million dollars to 60 million dollars in first-quarter 2020 sales.
Copyright (c) 2020 CercleFinance.com. All rights reserved.