Under Armor (UAA.US) said on Thursday that it has borrowed $700 million through its existing $1.25 billion revolving credit line to cope with the impact of the public health outbreak on its sportswear and footwear sales. .
The company started on March 16 Since then, it has closed all 188 stores in North America. Its spokesman did not mention the store’s latest business plan. The credit line Under Armor used this month represents a significant increase in its debt, requiring public disclosure. The company said the borrowing will increase its cash position and preserve liquidity and is a precautionary measure. The company may repay or reborrow a certain amount of funds based on market conditions, business needs and other factors.
As early as February 11, before the U.S. stock market opened, Under Armor (UAA.US) released its Q4 financial report, which showed that its revenue was lower than expected and its guidance was weak, which dragged down the stock price before the market opened. More than 13%, and as of 20:55 Beijing time, it fell 13.3% to US$17.72.
According to the financial report, in the fourth quarter, Under Armor’s revenue increased slightly by 4% to US$1.44 billion from US$1.39 billion in the same period last year, but was lower than the forecast of US$1.47 billion. .
Under Armor reported a quarterly net loss of US$15.3 million, or 3 cents per share, compared with a net profit of US$4.2 million, or 1 cent per share, in the same period last year. Adjusted earnings per share in the fourth quarter were 10 cents, in line with expectations.
The company said its sportswear and sneakers are facing “continued demand challenges” and expects to decline single-digit percentage sales in fiscal 2020. Under Armor said sales in North America experienced a high-single-digit decline.
Under Armor also looked ahead to the prospects for 2020, predicting that the epidemic will reduce its sales in the first fiscal quarter by approximately US$50 million to US$60 million. </p
