Under Armour sales tank as coronavirus shutters stores
Majority of company's stores closed for most of second quarter
Under Armour revenue plunged 41 percent in the three months through June as the COVID-19 pandemic shuttered retail stores across the country.
The Baltimore-based athletic apparel manufacturer reported a second-quarter net loss of $182.9 million, or an adjusted 31 cents per share, compared with a loss of $17.3 million a year prior. Net revenue was $707.6 million.
The company booked a $436 million charge consisting of $301 million in restructuring and $135 million for a goodwill writedown.
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"With the majority of our own stores and wholesale locations closed for most of the second quarter due to the COVID-19 pandemic, while we performed better than expected, we still experienced a significant decline in revenue across all markets," CEO Patrik Frisk said in a statement.
Wholesale revenue slid 58 percent to $299 million while direct-to-consumer sales dropped 13 percent to $368 million.
North American sales, which accounted for 64 percent of all revenue, were down 45 percent at $450 million.
Apparel sales fell 42 percent to $426 million while footwear sales were off 35 percent and accessories saw a 47 percent decline. Inventory rose 24 percent during the quarter to $1.2 billion.
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Under Armour ended the quarter with $1.1 billion cash and cash equivalents. It issued $500 million of senior convertible notes in the quarter, using much of it to pay down debt under a $1.1 billion revised credit line.
Under Armour shares were down 47 percent this year through Thursday, lagging the S&P 500's 0.48 percent gain.