“We’re going to see a gradual opening and I think there’s going to be a few ups and downs.” Under Armour CEO Patrik Frisk says some stores that reopen may have to shut down again because of coronavirus.
Further, management warned the worst is yet to come during the second quarter, where sales could fall 60%, as demand for its sneakers and workout tops is crippled.Under Armour said it plans to cut about $325 million from its operating expenses in 2020, as it tries to weather the crisis.
But some analysts think there are too many challenges, some of which were already in place before the pandemic slammed the retail industry. Under Armour has long been working in the shadows of"The Covid-19 crisis has exacerbated the existing problems facing the Under Armour brand," Susquehanna Financial Group analyst Sam Poser said in a note to clients.
Under Armour shares have fallen more than 57% this year. The company has a market value of about $4.2 billion.
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