American retail seller of clothes surprised their outlook on the sales. Company forecast drop in revenues in 2020. The main reason to downgrade the outlook is North America and hurt coronavirus from China, which is their fast-growing market. Stocks of Under Armour dropped by 13% after the message was released.
Revenues from their biggest market share could decline at a mid- to high-single-digit percentage rate. On the other side international trade could rise. Estimation of companies pre-tax charges were 325 million to 425 million USD which are part of their restructuring initiative this year. It includes foregoing opening a flagship store in New York City, a hotspot for footwear brands.
Chief Executive Office Patrik Frisk said: “Ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments.”
Massive sell-off of stock by investors was, because analysts expected company’s growth in 2020 by 4,2%. On the other side, company’s full-year expectations are down at a low single-digit percent from 2019. For the fourth quarter ended Dec.31, net revenue rose 3.7% to $1.44 billion, but missed estimates of $1.47 billion.