Under Armour’s quarterly revenue slumps on lockdowns hit, Retail News, ET Retail

Athletic attire maker Under Armour Inc on Monday documented a 23{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} tumble in quarterly profits, as merchants across the globe remained shut because of to the COVID-19 pandemic.

The enterprise previous month briefly laid off about 600 staff members at its U.S.-dependent distribution facilities, prolonged retailer closures and withdrew its forecast for the 12 months as the coronavirus crisis led to lockdowns across the state, limiting business only to online operations.

Quite a few retail and department shops that offer Under Armour merchandise were being also shut through the last weeks of the quarter.

“Our final results in January and February were being tracking effectively to our plan. Given that mid-March, as the pandemic accelerated drastically in North The united states and EMEA… we have professional a major decrease in profits across all marketplaces,” Chief Executive Officer Patrik Frisk said.

The Baltimore-dependent enterprise documented a web loss of $589.seven million, or $1.30 for each share, in the to start with quarter finished March 31, as opposed with a income of $22.five million, or five cents for each share, a 12 months earlier.

Net profits fell to $930.two million from $1.twenty billion, down below the $949 million figure forecast by analysts in accordance to IBES info from Refinitiv.

The enterprise said it saw “additional favorable trends” in its North The united states and Europe, Middle East and Africa online business, which makes up for a modest share of total profits, because the beginning of the existing quarter.

In North The united states, its biggest segment which built up for about sixty five{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} of total gross sales in the quarter, profits slumped 28{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} to $609 million, when global gross sales fell 12{cbf6da10fac2230370cea9448ed9872290737d25c88b8c8db3eefaf8c399e33d} to $287 million.