An Under Armour store front is seen on November 04, 2019 in Sunrise, Florida.

Joe Raedle | Getty Images

Under Armour reported a sales decline of 23% during its first quarter, as its business took a blow from the coronavirus pandemic and its stores were forced shut, freezing its turnaround plans. 

The retailer said it plans to cut roughly $325 million in costs in 2020, to help it weather the crisis, including by temporarily laying off some of its retail employees. 

Its shares were down nearly 2% in premarket trading following the release. 

Here’s how Under Armour did during its fiscal first quarter ended March 31: 

  • Earnings per share: A loss of 34 cents, adjusted 
  • Revenue: $930.2 million 

“Since mid-March, as the pandemic accelerated dramatically in North America … and retail store closures ensued, we’ve experienced a significant decline in revenue across all markets,” Chief Executive Patrik Frisk said in a statement. 

Under Armour reported a net loss of $589.7 million, or a loss of $1.30 per share, compared with a profit of $22.5 million, or 5 cents per share, a year ago. 

Excluding one-time charges, the company lost 34 cents per share. 

Net revenue fell 23% to $930.2 million from $1.20 billion. Under Armour said roughly 15 percentage points of the decline stemmed from the Covid-19 crisis. 

Apparel sales dropped 23% to $598 million, footwear revenue was down 28% to $210 million, and accessories revenue declined 17% to $68 million, it said. 

Analysts had been calling for the company to report an adjusted net loss of 19 cents per share, on revenue of $949 million, according to a poll by Refinitiv. However, it is difficult to compare reported earnings to analyst estimates for Under Armour’s first quarter, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess. 

As of Friday’s market close, Under Armour shares are down almost 54% this year. The company has a market cap of $4.5 billion. 

Find the full earnings report from Under Armour here. 

This is a developing story. Please check back for updates.