Under Armour to Re-open Almost 50% of North American Stores by Friday

The coronavirus pandemic has smashed Under Armour's revenue. The company closed its 188 North American stores in April.
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Under Armour  (UAA) - Get Report shares rose Thursday after the athletic apparel company announced that it will reopen almost 50% of its North American stores by Friday.

The company began the re-openings on May 15. It closed its 188 North American stores in April amid the coronavirus pandemic.

“In regular consultation with government and public health officials, the company will continue to reopen additional stores on a case-by-case basis,” Under Armour said in a statement.

Pandemic protocols for the openings include reduced store hours to allow time for cleaning, limited store occupancy and requirements for workers and customers to wear masks.

Earlier this month, Under Armour reported a wider-than-expected first-quarter loss, as the pandemic shrunk demand for its products, particularly in Asia, which accounts for roughly half of its revenue.

The Baltimore-based company posted a loss of $590 million, or $1.30 a share, vs. net income of $22.5 million, or 5 cents a share, in the year-ago period. On an adjusted basis, the company registered a loss of $152 million, or 34 cents a share, significantly worse than the 17-cent loss forecast by analysts polled by FactSet.

Revenue fell 23% to $930 million, with approximately 15 percentage points of the decline due to “pandemic impacts,” the company said.

“It appears there is little hope of a quick recovery” for the company, Morningstar analyst David Swartz wrote this month.

Under Armour shares recently traded at $9.62, up 0.3%. The stock has dropped 31% over the last three months, compared to a 13% gain for industry leader Nike  (NKE) - Get Report.