The impact of Sports Authority’s liquidation continues to produce ripples across the retail world.
On Tuesday, the performance footwear and apparel brand Under Armour announced it would be revising its previously issued financial guidance for 2016, citing the closure of Sports Authority as the main contributing factor.
Under Armour says it now expects 2016 net revenues of $4.925 billion, down from the $5 billion the company previously announced, as well as operating income of approximately $440 million to $445 million. Due to the bankruptcy, Under Armour was only able to recognize $43 million of the $163 million in revenue it originally expected from Sports Authority in 2016.
Kevin Plank, Under Armour chairman and CEO, said in a statement, “While The Sports Authority’s bankruptcy impacts our 2016 outlook, our brand’s momentum is stronger than ever as we continue to see growth and increased demand across all categories and geographies. This one-time event will not impact our focus on making the best decisions for Under Armour through investments that protect and drive our growth.”