Under Armour puts NYC flagship store on ice, restructures
Posted: 7:07 PM, Feb 11, 2020
SAN RAFAEL, CA – OCTOBER 22: The Under Armour logo is displayed on the new Stephen Curry basketball shoe at T & B Sports on October 22, 2015 in San Rafael, California. Under Armour Inc. reported a 28 percent surge in third-quarter earnings with a profit of $100.5 million, or 45 cents a share, compared to $89.1 million, or 41 cents a share, one year ago. (Photo by Justin Sullivan/Getty Images)
Under Armour's shares have tumbled after the athletic wear company said it anticipates a big financial hit from the viral outbreak in China.
It also said that it may need to book hundreds of millions of dollars in charges as it restructures its business.
The athletic gear company anticipates the outbreak in China will drag first-quarter sales down by $50 million to $60 million.
It's also looking at pretax charges this year of between $325 million to $425 million related to restructuring.
The company said Tuesday that it may scuttle the opening of its flagship store in New York City.
The Baltimore company swung to a loss of $15.3 million in the final quarter of 2019.
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