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Under Armour Falls After Q4 Earnings Miss, Restructuring Initiative

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Under Armour Falls After Q4 Earnings Miss, Restructuring Initiative

Under Armour (NYSE: UA)(NYSE: UAA) reported fourth-quarterly losses of 3 cents per share on Tuesday, which missed the analyst consensus estimate by 4 cents. This is a 133% decrease over earnings of 9 cents per share from the same period last year.

The company reported quarterly sales of $1.4 billion, which missed the analyst consensus estimate of $1.47 billion by 4.76%. This is a 0.72% increase over sales of $1.39 billion the same period last year.

The company sees 2020 earnings of 10-13 cents per share, far below the 47-cent estimate.

"Ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable, profitable growth over the long-term," Under Armour CEO Patrik Frisk said in a statement.

The company also announced it's "currently assessing a potential 2020 restructuring initiative to rebalance its cost base to further improve profitability and cash flow generation. In connection with this potential plan, the company is considering $325 million to $425 million in estimated pre-tax charges for 2020, including approximately $225 million to $250 million related to the possibility of foregoing opening a flagship store in New York City while pursuing sublet options for the long-term lease."

Under Armour shares were trading down 15.7% at $17.30 in Tuesday’s pre-market session. The stock has a 52-week high of $24.55 and a 52-week low of $15.06.

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