Under Armour Announces Actions To Address Financial Impacts Related To COVID-19, Provides Additional Detail On Its 2020 Restructuring Plan
"In these unprecedented and challenging times, the majority of stores where
The actions announced today include:
- The extension of current store closures until further notice. The company will continue to monitor the situation globally, and will make re-opening decisions on a country-by-country basis based on guidance provided by local health authorities.
April 12th, the company will temporarily lay off the teammates that work in its U.S.Brand (full price) and Factory House (outlet) stores, and approximately 600 teammates that work at its U.S.-based distribution centers. Additionally, the company will begin paying premium bonuses to its distribution center teammates continuing to work during the crisis. The company will have provided up to four weeks of full pay for these retail store and distribution center teammates since this crisis started.
- Effective immediately, the company's Board of Directors will be reducing its compensation by 25% and all of the company's Executive Vice Presidents and above will be taking a 25% salary cut through the duration of the crisis.
- The company will cover full health benefits for benefit-eligible teammates for approximately two months during this temporary layoff period.
- Due to varying degrees of pandemic impact outside of the
U.S.and differing local employment laws, regulations and government relief considerations, the company will address employment status and potential considerations on a country-by-country, local basis for retail teammates.
2020 Restructuring Plan
$175 millionof cash-related restructuring charges, comprised of up to: $55 millionin facility and lease termination costs, $25 millionin employee severance and benefit costs, and $95 millionin contract termination and other restructuring costs; and $350 millionof non-cash charges comprised of an impairment of approximately $290 millionrelated to the company's New York Cityflagship store, and $60 millionof intangibles and other asset related impairments.
2020 Earnings Outlook Update
As a result of ongoing disruption and uncertainty related to the global COVID-19 pandemic,
Forward Looking Statements
This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements, and include statements regarding the impact of the COVID-19 pandemic on the Company's business, anticipated charges and restructuring costs and the timing of these measures and projected savings related to its restructuring plans. These forward-looking statements are subject to risks, uncertainties, assumptions and changes in circumstances that may cause the impact of the COVID-19 pandemic or the estimated future impact of restructuring charges and costs to differ materially from the forward-looking statements. These risks include uncertainties regarding the impact of the pandemic on the global economy, the Company's customers and its business, its ability to retain its workforce upon resuming its retail and distribution operations, the Company's ability to successfully execute its restructuring plan, higher than anticipated costs in implementing the restructuring plan, management distraction from ongoing business activities, damage to the Company's reputation and brand image and workforce attrition beyond planned restructuring related reductions. Additional information regarding other factors that could cause the Company's results to differ can be found in the Company's Annual Report on Form 10-K for the fiscal year ended
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Under Armour, Blake Simpson, SVP, Global Communications, PR & Events, (443) 630-9959, Lance Allega, SVP, Investor Relations & Corp. Development, (410) 246-6810