Under Armour Inc. (NYSE: UAA) released its fourth-quarter financial results before the markets opened on Tuesday. The company said that it had a net loss of $0.03 per share and $1.4 billion in revenue, while the consensus estimates had called for $0.10 in earnings per share (EPS) on $1.47 billion in revenue. In the same period of last year, the apparel maker said it had $0.09 in EPS and $1.39 billion in revenue.

During the latest quarter, revenue increased 4% year over year, and also 4% on a currency-neutral basis. The company posted a gross margin of 47.3%, driven by pricing including lower discounts to our wholesale partners, channel mix and supply chain initiatives.

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For its segments, the company reported as follows:

• Apparel revenues increased 0.2% year over year to $970.3 million.
• Footwear revenues increased 10.3% to $259.3 million.
• Accessories revenues increased 1.6% to $109.9 million.

Looking ahead to the 2020 full year, the company expects to see EPS in the range of $0.10 to $0.13 and revenues declining in the low single-digit percentages compared to 2019 results. The analysts currently have consensus estimates of $0.47 in EPS and $5.51 billion in revenue for the year.

It’s worth pointing out that Under Armour’s initial 2020 outlook currently includes a negative impact due to the coronavirus outbreak in China. In terms of the numbers, the company expects to see a negative impact of roughly $50 million to $60 million in sales related to the first quarter. However, this outlook does not assume anything past the first quarter.

Patrik Frisk, Under Armour’s president and chief executive, commented:

Under Armour is an operationally better company following our transformation over the past few years, with a clearly defined and focused strategy, enhanced go-to-market process, cleaner inventories and a stronger balance sheet. However, ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable, profitable growth over the long-term.

Shares of Under Armour traded down 16% early Tuesday at $17.16. The 52-week range is $16.74 to $27.72, and the consensus price target was last seen at $21.50.

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