Under Armour is facing a perfect storm of issues between accounting investigations, coronavirus weighing on sales, and weak demand in North America
In November, Under Armour announced that its accounting practices were being investigated by the US Securities and Exchange Commission and the US Department of Justice. The company's longtime leader and founder Kevin Plank announced he would be stepping down from his position as CEO in October.
The impact of the coronarvirus is perhaps the cherry on top of the sportswear company's issues. Negative impact from the virus, which has alreadypeople around the world, has caused the company to lower its initial outlook for 2020. Under Armour estimated in its earning release that the fallout from the outbreak will cost the company $50 million to $60 million in sales for the first quarter of the year.
The company is also considering delaying plans for a flagship store in New York City as it assesses a restructuring plan to balance costs and account for losses.
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