The Sports Authority Is Not Competing Against The Electricity Supplier To Declare Bankruptcy.

It is reported that in long-term customers

After The Sports Authority announced its bankruptcy filing, the US sports brand Under Armour reiterated its second quarter performance forecast and its performance in the 2016 fiscal year.

The Sports Authority company has 463 stores in the United States, and the debt has accumulated to $1 billion 100 million due to the lack of competition in e-commerce and poor operation.

The company announced its bankruptcy earlier, and immediately completed its clearance sale at 200 of its stores.

The company recently announced that the remaining stores and 2 logistics centers will be closed during the bankruptcy reorganization process.

When it announced its first quarter earnings, the group said it believed that the bankruptcy of The Sports Authority would not have a substantial impact on its accounts receivable, and would help during the restructuring of The Sports Authority. In order to offset the impact of the latter bankruptcy on its performance, the group would continue to sell products to The Sports Authority and increase sales to other channels and customers.

Under Armour expects the group to reduce its expenditure in the second quarter to $23 million. In addition, Under Armour earlier estimated that sales in The Sports Authority will reach 163 million dollars in fiscal 2016, but its total sales amount is only 43 million dollars.

Under Armour reiterated its expected performance in the 2016 fiscal year. The Group expects net sales in 2016 to be US $4 billion 930 million, an increase of 24% compared with the 2015 fiscal year, and the investment bank Capital IQ expects the group's sales in 2016 to be US $5 billion 30 million.

It is expected to grow by more than 20%.

Due to the second quarter of the impairment of expenditure, the second quarter is expected to balance between 17 million and 19 million dollars, the share price fell more than 2% in the after hours trading yesterday to 36.89 U.S. dollars per share.

Under Armour group CEO Kevin Plank pointed out that although the bankruptcy of The Sports Authority affected the performance expectations of the group in fiscal year 2016, the demand for all product categories of brands in all parts of the world is increasing. The bankruptcy of The Sports company will not affect the decision-making of the group, and the group will protect and promote its growth through investment.