Under Armour Shares Crash, Blames China
Courtesy of ZeroHedge
Under Armour shares slid 14% Tuesday morning after the Baltimore-based athletic company posted an unexpected fourth-quarter loss.
The company forecasted a surprise drop in 2020 revenue, mostly due to weakness in North America. It then warned that the coronavirus outbreak in China would dent sales in one of its fastest-growing markets:
"The company's initial 2020 outlook currentlyincludes an estimated negative impact of the coronavirus outbreak in China of approximately $50 million to $60 million in salesrelated to the first quarter of 2020."
Under Armour revised its full-year 2020 revenue projection, down to now the low-single-digits from 2019.
More companies like Under Armour are expected to revise their 2020 outlooks as China's economy has come to a standstill.
The coronavirus impact on China is global, it could produce a shock that tilts the world into recession.