Under Armour may put NYC flagship store on ice, restructure

Under Armour may put NYC flagship store on ice, restructure
FILE- This March 5, 2017, file photo shows a closeup of Under Armour cleats are seen before a drill at the 2017 NFL football scouting combine in Indianapolis. Under Armour says it's considering a restructuring plan and anticipates the virus outbreak in China dragging first-quarter sales down by $50 million to $60 million. The athletic clothing company moved to a loss of 3 cents per share in the fourth quarter. Its adjusted profit was 10 cents per share, meeting the expectations of analysts polled by Zacks Investment Research. Revenue of $1.44 billion was below the $1.46 billion Wall Street predicted. (AP Photo/Gregory Payan, File)

BALTIMORE (AP) — Under Armour is plunging in premarket trading after the company said it anticipates a big financial hit from the viral outbreak in China and saying separately that it may need to restructure this year at a cost of hundreds of millions of dollars.

The athletic gear company anticipates the virus outbreak in China will drag first-quarter sales down by $50 million to $60 million. It’s also looking at pre-tax charges this year of between $325 million to $425 related to restructuring. The company said Tuesday that it may scuttle the opening of its flagship store in New York City.

The Baltimore company swung to a loss of $15.3 million in the final quarter of 2019, or 3 cents per share in the fourth quarter. Its adjusted profit was 10 cents per share, meeting the expectations of analysts polled by Zacks Investment Research. But its revenue of $1.44 billion was just short of Wall Street projections.

Under Armour Inc. expects full-year revenue to be down at a low single-digit percent compared to a year ago. Earnings are forecast between 10 cents and 13 cents per share.

Shares slid 13% before the opening bell.

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Elements of this story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UAA at https://www.zacks.com/ap/UAA