Under Armour (UA, UAA) reports earnings pre-market Monday and faces a vital report amid the coronavirus outbreak. Shares are very volatile on the trading day following earnings reports, and this Monday should be no different even with expectations quite poor already. EPS estimates for Q1 are -$0.18 on revenues of $938 million, down from $0.05 on $1.20 billion from the year-ago quarter. Anticipating a large move in earnings will boil down to just how bad EPS and revenues come in for the quarter and if next quarter guidance should it be provided shows any changes to sales growth apart from the already expected -28%.

What's in Store

Under Armour’s continual decline as an influential retailer on the youth is shown again – “Google U.S. searches dropped 14% Y/Y to a 5-year trough and interactions per post on Instagram continue to decline.” On April 3, CEO Patrik Frisk announced that “the majority of stores where Under Armour is available remain closed, contributing to a significant decline in revenue” and even with “some early signs of recovery in our APAC region, this unanticipated shock to our business has been acute.” Due to this (and NA stores closed from mid-March onwards), guidance for this quarter and the full fiscal year have already been pulled.

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