On September 9, according to foreign media reports, the American sports brand Under Armor announced last Tuesday that it planned to lay off 600 employees globally due to the impact of the epidemic on its business.
Under Armor said in a filing that it expects the company’s layoffs to incur $235 million in charges, including $135 million in contract termination charges and other restructuring charges. In addition, the company has increased its restructuring charges for the full year by US$75 million, and expects the expenses to reach between US$550 million and US$600 million for the full year.
Under Armor also said that it expects most of the remaining restructuring costs to be used for expenses at the end of this year. It is reported that in April this year, Under Armor also stated that it would temporarily lay off about 600 employees in its U.S. distribution center.
On July 31, Under Armor announced key financial data for the second quarter of 2020 , affected by the epidemic, operating income fell 41% year-on-year to US$708 million, and the company’s adjusted net loss reached US$141 million.
“Due to the epidemic, most of our stores and dealer locations were closed in the second quarter. Although the current performance has been better than expected, the company’s revenue still declined significantly. “In this environment, our team will continue to strategically connect with consumers through innovative digital ways and manage the company’s cost structure,” said Patrik Frisk, the company’s president and CEO. And we will strive to seize our brand advantages and become a stronger company as consumer behavior changes.”
Recently, Canadian sports brand Lululemon also announced its second quarter results According to the performance report, during the reporting period as of August 2, Lululemon’s net income achieved a reverse growth of 2%, reaching US$902.9 million, but the company’s direct store net income was US$287.2 million, a year-on-year decrease of 51%; net profit year-on-year It fell 30.56% to $86.8 million, and diluted earnings per share were 66 cents.
lululemon CEO Calvin McDonald said: “We Pleased with the overall business results for the second quarter, as lululemon continues to realize its full potential. With global trends shifting to working from home and exercising, and people increasing their focus on health, we think 2020 is likely to be a good year for retail and lululemon. An inflection point. We are cautiously optimistic about the second half of the year as we continue to navigate the uncertainties.”</p
