The
company said it expects revenue in North America, its biggest,
to decline at a mid- to high-single-digit percentage rate, while
its international market is expected to rise.
Under Armour, known for its moisture-wicking fabric worn by star
athletes, has been struggling to grow sales in its home market
due to new launches by larger rivals Nike Inc <NKE.N> and Adidas
<ADSGn.DE> and heavy promotions at department stores.
Under Armour also estimated a $325 million to $425 million in
pre-tax charges as part of its restructuring initiative this
year, which will include foregoing opening a flagship store in
New York City, a hotspot for footwear brands.
"Ongoing demand challenges and the need to drive greater
efficiencies in our business requires us to further prioritize
our investments," new Chief Executive Officer Patrik Frisk said
in a statement.
The company said the outbreak in China, which has killed more
than a thousand people and forced several retailers to shut
doors and revise their forecasts, would have a $50 million to
$60 million impact on first-quarter sales.
Full-year revenue is expected to be down at a low single-digit
percent from 2019, Under Armour said.
Analysts on average were expecting a growth of 4.2% in 2020,
according to IBES data from Refinitiv.
For the fourth quarter ended Dec.31, net revenue rose 3.7% to
$1.44 billion, but missed estimates of $1.47 billion.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj
Kalluvila)
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