Update (1010ET): Under Armour CEO Patrik Frisk said Tuesday that coronavirus has triggered “industry-wide delays in delivery:”
- UNDER ARMOUR CEO ON CORONAVIRUS- SEES INDUSTRY-WIDE DELAYS IN DELIVERY, INCL MISSED SHIPMENT; SEES NEED FOR MORE AIR FREIGHT
- UNDER ARMOUR CEO ON CORONAVIRUS- WITH RESPECT TO FACTORIES, CO CONTINUING TO SEE CLOSURES, CHANGING TIMELINES OF WHEN THEY MIGHT REOPEN 11-Feb-2020
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Under Armour shares slid 14% Tuesday morning after the Baltimore-based athletic company posted an unexpected fourth-quarter loss.
The company forecasted a surprise drop in 2020 revenue, mostly due to weakness in North America. It then warned that the coronavirus outbreak in China would dent sales in one of its fastest-growing markets:
"The company's initial 2020 outlook currently includes an estimated negative impact of the coronavirus outbreak in China of approximately $50 million to $60 million in sales related to the first quarter of 2020."
Under Armour revised its full-year 2020 revenue projection, down to now the low-single-digits from 2019.
More companies like Under Armour are expected to revise their 2020 outlooks as China's economy has come to a standstill.
The coronavirus impact on China is global, it could produce a shock that tilts the world into recession.