Sports Authority woes impact Under Armour guidance
01/06/2016
Following the decision to liquidise Sport Authority’s business rather than restructuring it, Under Armour expects to incur an impairment charge of $24 million during the second quarter of 2016. The company was able to recognise just $43 million of the projected $163 million in revenues from Sports Authority for the full year.
This impairment and the loss of further sales means Under Armour now expects 2016 net revenues of $4.925 billion and operating income of between $440 million and $445 million. For the second quarter of the year it anticipates revenue to be consistent with previously issued guidance (upper 20% range), but operating income is now forecast to range from $17 million to $19 million.
Sports Authority announced that it plans to auction of the remaining 320 of its leases during June, including prestigious locations in New York, Chicago, Los Angeles, Dallas, and Miami.
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