Under Armour posted earnings on Monday, May 11.
The company posted a wider-than-expected first-quarter loss as the global pandemic shrunk demand for its athletic clothing and other gear, particularly in Asia, where roughly half the company’s revenue comes from.
Under Armour reported a loss of $590 million, or $1.30 a share, vs. net income of $22.5 million, or 5 cents a share, in the comparable year-ago period. On an adjusted basis, the company posted a loss of $152 million, or 34 cents a share, well below the 17-cent loss forecast by analysts polled by FactSet.
"Since mid-March, as the pandemic accelerated dramatically in North America and EMEA and retail store closures ensued, we've experienced a significant decline in revenue across all markets,” said Under Armour CEO Patrik Frisk, noting that the company was already feeling the impact from its Asia operations as far back as January.
Revenue fell 23% to $930 million, though approximately 15 percentage points of the decline were due to “pandemic impacts” in the quarter, the company said. North America revenue decreased by 28% to $609 million while Asia-Pacific sales fell 34%. The company had some $940 million in inventory at the end of March.
Watch More of the Latest Videos from TheStreet and Jim Cramer
- Jim Cramer on Moderna Coronavirus Vaccine: 'I Think Phase 3 Is Coming'
- Jim Cramer: What Coronavirus Means for Your Money in May
- Jim Cramer: Uber Eats Shouldn't Compete with GrubHub
- Jim Cramer: Paypal Is 'COVID Currency Play'
- Crunch Fitness CEO's Tips for Staying Fit Indoors
- Plunge in Travel Due to Coronavirus Pandemic Leads to Massive Tech Company Layoffs