Under Armour Inc. cut its sales outlook for the year, citing the bankruptcy of Sports Authority, the Wall Street Journal reported today. Given the recent approval of Sports Authority’s liquidation, as opposed to a restructuring or sale of the continuing business, Under Armour said that it would realize only about a quarter of the revenue it had planned to receive from Sports Authority. In addition, the company said it would take a $23 million impairment charge in its current quarter. Under Armour Chief Executive Kevin Plank noted that the company still has strong brand momentum and pointed out that Sports Authority’s bankruptcy is a one-time event. Read more. (Subscription required.)
In related news, the owner of the NFL’s Denver Broncos is seeking to end its stadium-sponsorship agreement with Sports Authority Holdings Inc., the Wall Street Journal reported today. The team’s request to scrap the deal comes after the bankrupt retailer skipped two payments this year and made an unauthorized attempt to sell the stadium naming rights in bankruptcy court. The Broncos claim Sports Authority owes them roughly $2.1 million for 2016. Read more. (Subscription required.)