Under Armour Investors: Stop Worrying About Sports Authority's Bankruptcy

A closed Sports Authority store in Denver, Colo. -- one of 140 stores total that Sports Authority is closing. Photo by the author.

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Athletic retailer Sports Authority announced in early 2016 that it was in financial trouble, and by March the company declared a full bankruptcy, with plans to liquidate assets and close 140 stores. Sports Authority has been one of Under Armour's(NYSE: UA) (NYSE: UA-C)largest retail partners, and because of the bankruptcy, Under Armour estimated that it would receive about a quarter of the sales it originally planned from the retailer this year.

Under Armour earnings take a hit

Under Armourstock slid backwards at the end of June, as second-quarter earnings came in 58% lower than a year ago at just $6 million. Even though revenue grew 28% year over year, above expectations, and Under Armour announced new partnerships and growth opportunities, the stock still dropped nearly 10% over the next few days.

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