UA - 4 Harsh Lessons from Under Armour's Post-Earnings Meltdown
Under Armour's (NYSE: UA) (NYSE: UAA) stock recently plummeted after the footwear and athletic apparel maker reported its fourth-quarter numbers. The company's revenue rose 4% annually to $1.44 billion, but still missed estimates by $30 million.
On the bottom line, Under Armour reported a net loss of $15 million, compared to a profit of $4 million a year earlier, mainly due to $62 million in tax expenses and impairment charges. But on a non-GAAP basis, which excludes those one-time expenses, its earnings grew by a penny to $0.10 per share and met analysts' expectations.
Yet UA's guidance for 2020 was bleak. It expects its revenue to decline by the low single digits, with a "mid to high-single-digit decline" in its North American revenue and a $50-$60 million hit to its first-quarter sales from the novel coronavirus outbreak in China.