Under Armour posted a fourth-quarter loss and said it's considering a 2020 restructuring plan as sales decline, sending shares lower.
Continue Reading Below
The Baltimore-based sports apparel maker lost $15.3 million, or 3 cents per share, after taking a $39 million charge related to its equity interest investment in its Japanese licensee. Revenue rose 4 percent year-over-year to $1.4 billion, missing the $1.47 billion that was expected.
For the full year, Under Armour earned $92 million, up 1.7 percent from a year ago, on revenue of $5.3 billion.
"Under Armour is an operationally better company following our transformation over the past few years, with a clearly defined and focused strategy, enhanced go-to-market process, cleaner inventories and a stronger balance sheet," Under Armour CEO Patrik Frisk said in a statement. "However, 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."
|UA||UNDER ARMOUR INC||12.55||-0.49||-3.76%|
Under Armour is considering a 2020 restructuring plan to improve profitability and cash-flow generation. The strategy would include a pre-tax charge of $325 million to $425 million, including about $225 million to $250 million related to the possible opening of a flagship store in New York City.
Looking ahead, Under Armour expects 2020 revenue to drop less than 5% from last year as declining sales in North America erode the benefits of growth internationally. Earnings should be 10 cents to 13 cents a share, the company said.
Under Armour shares fell 5.4 percent this year through Monday, trailing the S&P 500's 3.8 percent gain.