Under Armour’s COVID-19 costs could spread — Panjiva


Under Armour’s COVID-19 costs could spread

China 2205 Cons. Discr. - Apparel 292 Cons. Discr. - Retailing 225 Taiwan 132 Theme - Disasters 79 U.S. 3973 Vietnam 233

Sports clothing manufacturer Under Armour reported a Q4 net loss of $15 million compared to analysts estimates of a $47 million profit, S&P Global Market Intelligence data shows. That partly reflected revenue growth that was two percentage points lower than expected. 

Panjiva’s data shows that U.S. seaborne imports linked to the firm climbed 12.3% year over year in Q4. The firm has provided guidance that revenue in 2020 will decline by “a low single-digit percentage” rate while Q1 revenues are expected to fall by 13% to 15%. Imports to the U.S. in January rose by 5.7%, compared to total U.S. seaborne imports of apparel and footwear which continued the decline seen in Q4 with a 13.8% slide.


Chart compares U.S. seaborne imports associated with Under Armour to those of all imports of apparel and footwear. Source: Panjiva

The firm has identified that the outbreak of coronavirus COVID-19 will trim revenues by one percentage point, or $50 million to $60 million, for the year and five percentage points in Q1. Under Armour’s CFO, David Bergman, has also stated that “we are currently exploring and further impacts of the coronavirus“. The details put it ahead of many other corporations, as discussed in Panjiva’s Jan. 31 research.

That could include an interruption in supplies of apparel manufactured in the firm in China. Panjiva’s data shows that 18.0% of U.S. seaborne imports linked to Under Armour came from China in 2020, led by shipments from Shanghai.

That followed a 12.9% rise in Q4 compared to a year earlier, though in January there’s been a 23.8% slide in shipments. There may be a natural decline following the continuation – albeit at a lower rate – of U.S. list 4A tariffs on certain apparel items after the U.S.-China phase 1 trade deal.

Among other major supplier territories to UA were led by Vietnam, which represented 26.8% of the total but has been in a steady decline with a rotation in shipments to Taiwan and Honduras.


Chart segments U.S. seaborne imports associated with Under Armour by origin on a monthly and three-month average basis. Source: Panjiva

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