Under Armour sees revenue fall 23% as Covid-19 lockdowns hit

Athletic apparel maker Under Armour on Monday reported a 23 per cent fall in quarterly revenue, as retailers across the world remained shut due to the Covid-19 pandemic.

The company last month temporarily laid off about 600 staff at its US-based distribution centres, extended store closures and withdrew its forecast for the year as the coronavirus crisis led to lockdowns across the country, limiting business only to online operations.

Several retail and department stores that sell Under Armour merchandise were also closed during the final weeks of the quarter.

“Our results in January and February were tracking well to our plan. Since mid-March, as the pandemic accelerated dramatically in North America and EMEA (Europe, Middle East and Africa). . . we’ve experienced a significant decline in revenue across all markets,” chief executive officer Patrik Frisk said.

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The Baltimore-based company reported a net loss of $589.7 million (€545 million), or $1.30 per share, in the first quarter ended March 31st, compared with a profit of $22.5 million (€20.8 million), or 5 cents per share, a year earlier.

Net revenue fell to $930.2 million (€860.2 million) from $1.20 billion (€1.1 billion), below the $949 million (€877.6 million) figure forecast by analysts according to IBES data from Refinitiv.

The company said it saw “more favourable trends” in its North America and Europe, Middle East and Africa online business, which makes up for a small percentage of overall revenue, since the beginning of the current quarter.

In North America, its biggest segment which made up for about 65 per cent of total sales in the quarter, revenue slumped 28 per cent to $609 million (€563.1 million), while international sales fell 12 per cent to $287 million (€265.4 million).