During The Long Term Application Of Bankruptcy Protection, Andrew Und Was Forced To Liquidate.

Under Armour Inc.

Group in the long term main customers, the United States

Sports Authority Inc., the retailer, was forced to liquidate after no application for bankruptcy protection on Tuesday. It announced on Tuesday that it would reduce its performance expectations for the current two quarter and fiscal year 2000.

Under Armour Inc. after the trading season, a sharp setback of up to 4.7%.

Under Armour Inc. Andrew said that it was expected to get $163 million from Sports Authority Inc. this year, but now it is only 43 million dollars. Therefore, the annual revenue forecast is raised to 5 billion US dollars from the first quarter earnings in April, and it will be reduced to 4 billion 925 million US dollars, which means that it will grow 24% over the 2015 fiscal year. The comprehensive expectation of Capital IQ is 5 billion 30 million US dollars, and the operating profit forecast has also been greatly reduced to $18 billion from the previous 5.03-5.07 billion US dollars.

In addition, the 23 million quarter of the two quarter will generate a write down of $23 million, so the operating profit will only be between $1700-1900 and revenue growth, which is expected to grow by more than 30% in the two quarters.

When Sports Authority Inc. filed for bankruptcy in early March, Under Armour Inc. Inc. Andrew reiterated its annual performance expectations.

At that time, the group claimed that it would provide help during the restructuring of Sports Authority Inc., and believed that the bankruptcy of the retailer would not have a substantial impact on its accounts receivable.

Sports Authority Inc. Inc. originally planned to break away from bankruptcy protection through restructuring measures such as layoffs, layoffs and cost reduction. Bankruptcy documents show that it is in arrears with Under Armour Inc. Andrea group and $23 million, while arrears Nike Inc. (NYSE:NKE).

The group is 48 million dollars.

"Although the bankruptcy of Sports Authority Inc. has affected our outlook for 2016, the momentum of our brand has been stronger than ever, and all kinds of products and regional markets have continued to grow," Under Armour Inc. founder, chairman and chief executive said in the latest announcement.

Data show that the group's revenue grew 30.2% to $1 billion 47 million 700 thousand in the first quarter, slightly higher than the market expected $1 billion 40 million.

Although the two quarter has been released by Morgan Stanley (NYSE:MS) Morgan Stanley analyst Jay Sole, the company's market share of the largest category of clothing and the growth of footwear sales have slowed down for the twenty-fourth consecutive quarter of the year. However, it is undeniable that Under Armour Inc. Andemar has been growing above 20% for twenty-fourth consecutive quarters, that is, the past 6 years.

The growth rate of 30.2% in the first quarter also extended the strong momentum of the four quarter of 30%+, but some data did confirm the view of Jay Sole.

Andemar, Under, Armour, Inc., who started off with rugby sportswear, rose 20% to $666 million 600 thousand in the previous quarter, and 22.2% in the fourth quarter. However, the proportion of clothing business fell sharply from 63.6% in the four quarter to 63.6%, and the footwear jumped from 14.3% in the four quarter to 25.2%, an increase of more than 10 percentage points.

If this reflects the group's active development of footwear and accessories to reduce dependence on clothing is a good thing, then the growth rate of footwear from 94.5% in the four quarter to 64.2% is not good news.

On the other hand, in the past few months, Under Armour Inc. Andrea has frequently lost its highly capable executive. The former chief financial officer, Brad Dickerson, has left. Chief sales officer Henry Stafford and chief digital officer Robin Thurston have resigned and will leave in July.

At the same time, in the past two years, in the US market, Adidas AG (ADSGn.DE) Adidas group has become the second largest sporting goods group in China, and Under Armour Inc., Andrea needs to face the challenges brought by the strong recovery of the former.

Under Armour Inc. (NYSE:UA) fell 0.58% to 37.7 U.S. dollars on Tuesday. The stock has fallen 9.4% in 2016 and has lost 1.6% of the S & P 500 index.