During the first quarter of 2016, the company became aware of the potential restructuring of The Sports Authority, but at that time Under Armour did not believe that the exposure to its receivables from The Sports Authority was materially impacted and the so they announced its intention to continue to support The Sports Authority as it proceeded through its restructuring, including support through continued sales in 2016.

Given the recent decision of the bankruptcy court to approve the liquidation of The Sport Authority's business rather than a restructuring or sale of the ongoing business, the company now expects to recognize an impairment charge of approximately 23 million US dollars related to The Sports Authority during the second quarter of 2016. 

In addition, due to the bankruptcy, Under Armour was only able to recognize 43 million US dollars of the originally planned 163 million US dollars in revenues with The Sports Authority for 2016.

As a result of this impairment as well as the loss of further planned sales to The Sports Authority, Under Armour now expects 2016 net revenues to be of approximately 4.925 billion US dollars, resulting in growth of 24% over the 2015 numbers. 2016 operating income is expected to be in the range of 440-445 million US dollars.

Kevin Plank, Chairman and CEO of Under Armour, stated: "While The Sports Authority's bankruptcy impacts our 2016 outlook, our brand's momentum is stronger than ever as we continue to see growth and increased demand across all categories and geographies.  This one-time event will not impact our focus on making the best decisions for Under Armour through investments that protect and drive our growth."