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Under Armour delays athlete payments as Q1 revenue takes Covid-19 hit

Getty ImagesUS sportswear manufacturer Under Armour is renegotiating contracts with some of its athlete endorsers in an attempt to offset some of the financial impact of the coronavirus pandemic. Under Armour reported a 23 per cent drop in sales for the first quarter of 2020 to US$930 million and a net loss of US$590 million. The Baltimore-based company also warned that its second-quarter revenue could fall by as much as 50 to 60 per cent if most of its stores remain closed due to the health crisis. During the company’s first-quarter earnings call, Under Armour confirmed that it had reached agreements to defer payments to some of its athletes to help the company cope with the sales losses. Puma Q1 profits plummet 61% to €36m“We’ve got pretty good relationships with a lot of those athletes obviously and we have been moving kind of our non-inventory vendors and relationships out a little bit further in payment terms,” said Dave Bergman, Under Armour’s chief financial officer. “And then sports marketing contracts are part of that.

Read more at:
https://www.sportspromedia.com/news/under-armour-athlete-endorsement-deals-coronavirus-revenue-losses-q1-2020

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