Under Armour sales tank as coronavirus shutters stores

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.

"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.