Under Armour said on Monday that its revenue was down 23 percent to $930 million, with approximately 15 percentage points of the decline related to COVID-19 pandemic impacts, in the first quarter.
The athletic apparel brand said its wholesale revenue decreased 28 percent to $592 million and direct-to-consumer revenue was down 14 percent to $284 million, representing 31 percent of total revenue. North American revenue decreased 28 percent to $609 million and revenue from its international business decreased 12 percent to $287 million, representing 31 percent of total revenue. Under Armour’s apparel revenue decreased 23 percent to $598 million, while footwear revenue decreased 28 percent to $210 million.
Under Armour said it expects to report $475 million to $525 million in pretax restructuring costs this year as it looks to revive its business. During the first quarter, it recorded $436 million in restructuring and impairment charges.
The company said it plans to cut about $325 million in operating costs in 2020 to help it weather the crisis, including by temporarily laying off some retail employees.
“During the first quarter, our results in January and February were tracking well to our plan. Since mid-March, as the pandemic accelerated dramatically in North America and EMEA and retail store closures ensued, we’ve experienced a significant decline in revenue across all markets,” said Patrik Frisk, president and CEO of Under Armour. “As a result, like so many businesses, we’ve had to make very difficult decisions, including temporarily laying off teammates in our U.S. retail stores and distribution centers along with other actions to ensure we protect Under Armour’s financial stability.”