Market Overview

Under Armour Sells Off Following Lowered Guidance, Sports Authority Restructuring

Share:
Under Armour Sells Off Following Lowered Guidance, Sports Authority Restructuring

Under Armour Inc (NYSE: UA) shares are down more than 3 percent in Tuesday's after-hours session. The company announced it now sees FY16 revenue of $4.925 billion vs. $5 billion estimates, with operating income now expected to range from $17-$19 million.

The sports apparel company expects an impairment charge of $23 million due to The Sports Authority restructuring. The company was only able to recognize $43 million of the planned $163 million in revenue.

Related Link: Steph Curry's Key Role In Under Armour's Footwear Business

"While The Sports Authority's bankruptcy impacts our 2016 outlook, our brand's momentum is stronger than ever as we continue to see growth and increased demand across all categories and geographies," CEO and Founder Kevin Plank said in a press release. "This one-time event will not impact our focus on making the best decisions for Under Armour through investments that protect and drive our growth."

Shares traded recently at $36.55, down 3.1 percent after hours.

Posted-In: sports authorityNews Guidance Financing After-Hours Center Movers Best of Benzinga

 

Related Articles (UA)

View Comments and Join the Discussion!
Need corporate guidance data?
Click here to see licensing options.
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Check Out How To Trade The GDP For Down Under

Exxon Mobil Likely To Deliver A Combination Of 'Industry Leading Returns, Dividend Growth And Solid Shareholder Returns'