Executive Summary

• The US Bankruptcy Court in Delaware recently approved the liquidation of Sports Authority. Since the business will not be restructured or sold, Under Armour will recognize an impairment charge of $23 million in 2Q16 related to the liquidation. In addition, Under Armour will be able to recognize only $43 million of the $163 million in revenues it originally expected from Sports Authority in 2016.
• As a result, Under Armour has revised its 2016 net revenue guidance from $5.0 billion to approximately $4.925 billion, representing revised year-over-year sales growth of 24% compared to 26% previously.