Under Armour posted a surprise loss during the holidays and said sales could take a hit from the coronavirus outbreak in China.
Shares of Under Armour plunged 17% Tuesday. The coronavirus outbreak in China will cause Under Armour to lose up to $60 million worth of sales this quarter, and the company warned those sales losses could get worse later in the year.
“Given the significant level of uncertainty with this dynamic and evolving situation, full year results could be further materially impacted.”
Other consumer brands have said recently that the spread of coronavirus in China will hurt their businesses.
Nike, Adidas and Capri Holdings, which owns Versace, Jimmy Choo and Michael Kors, are among the companies last week that warned investors that sales could take a hit as the virus spreads across China.
Under Armour, which replaced company founder Kevin Plank as the CEO last year, is also grappling with other challenges.
The company has struggled against competition from Nike, Adidas, Lululemon and others.
Nike and Under Armour “represent the market share grabbers in the athletic space” and are “much more compelling investment opportunities,” Oppenheimer analyst Brian Nagel said in a note to clients.