UAA - Under Armour Takes Hit From Coronavirus
Under Armour (NYSE: UA) (NYSE: UAA) just can't seem to find a groove. The athletic wear maker has been struggling to recover its past glory after the stock peaked in late 2015. While there were a few bright spots in its fourth-quarter earnings report, revenue fell short of expectations, sending the stock down 17%.
Further, its first-quarter outlook calls for a negative impact to revenue of $50 million to $60 million related to the coronavirus outbreak, which has already killed more than 1,000 people. Management made it clear that this outlook could change, given the "evolving situation." Guidance also doesn't include the costs from a potential restructuring initiative in 2020 "to improve profitability."
Image source: Under Armour.