Under Armour Warns, Citing the Bankruptcy of The Sports Authority as a Chief Concern

Due to the liquidation of The Sports Authority, the assholes who don’t know how to spell the word ‘armor’ as guiding down for 2016 and beyond. Aside from the fact that youth these days rather Snapchat that toss a ball around the yard, UA is facing a small hiccup in sales as TSA goes away.

As a result of the impairment as well as the loss of further planned sales to The Sports Authority, the co now expects 2016 net rev of ~$4.925 bln compared to previously issued guidance of $5 bln vs. $5.03 bln consensus, representing growth of 24% over 2015, and 2016 operating income of ~$440 mln to $445 mln from $503-507 mln.

With regard to the second quarter of 2016, the co continues to expect rev growth to be in the high 20% range, consistent with previously issued guidance.
However, as a result of the impairment noted above, operating income is now expected to range from $17 mln to $19 mln.

Much of TSA’s share will be gobbled up by Dick’s, and other nefarious vendors of overpriced sports goods. However, some will, indelibly, be lost to the sands of time. On this news, in spite of S. Curry advancing to the NBA finals, shares of UA are lower by 3.5% in the after-hours.