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Under Armour To Consider Restructuring; Issues 2020 Outlook - Quick Facts

Under Armour, Inc. (UA,UAA) said it is currently assessing a potential 2020 restructuring initiative. The company expects to complete its assessment during the first quarter of 2020. In connection with the potential restructuring, the company is considering $325 million to $425 million in estimated pre-tax charges for 2020. The company noted that it could realize approximately $30 million to $50 million in pre-tax benefits in 2020.

For fiscal 2020, Under Armour projects earnings per share to be in the range of $0.10 to $0.13, inclusive of an estimated $0.01 to $0.02 negative impact from the equity interest in its Japan licensee. Revenue is expected to be down at a low single-digit percent. The company noted that its outlook currently includes an estimated negative impact of the coronavirus outbreak of approximately $50 million to $60 million in sales related to the first quarter of 2020. The guidance does not include any possible benefits or costs from the potential restructuring initiative. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.47. Analysts' estimates typically exclude special items.

Fourth-quarter net loss was $15 million or $0.03 per share, inclusive of: a $23 million tax expense, which had a $0.05 negative earnings per share impact; and a $39 million impairment charge, which had an $0.08 negative earnings per share impact related to the equity interest investment in Japan licensee. Revenue was up 4 percent, or an increase of 4 percent currency neutral, to $1.4 billion.

Shares of Under Armour were down 12% in pre-market trade on Tuesday.

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