07 Mar Under Armour Stands By Sports Authority, Reiterates Outlook
Under Armour, Inc. reiterated its previously issued outlook for 2016 following the recent announcement by The Sports Authority of its commencement of a pre-arranged chapter 11 bankruptcy restructuring.
Based on current visibility, UA expressed it will continue to expect 2016 net revenues of approximately $4.95 billion, representing growth of 25 percent over 2015, and 2016 operating income of approximately $503 million, representing growth of 23 percent over 2015, in line with the financial targets outlined in recent earnings release issued on Jan. 28, 2016.
The Sports Authority is a longstanding customer of UA, and the company intends to support them as they proceed through their restructuring.
UA plans to offset the impact of the bankruptcy on its full year 2016 results through continued sales to The Sports Authority and sales through other channels and customers. In addition, although UA does not currently believe that the exposure to its receivables from The Sports Authority is materially impacted by these developments, they will continue to monitor the proceedings and its related impact during the first quarter of 2016.