Last week, sporting goods retailer Sports Authority filed for Chapter 11 bankruptcy and announced plans to close 140 locations and lay off 3,400 employees. With being $1.1 billion in debt––$23 million of which is owed to Under Armour–– things aren't looking too good for the retailer.
Despite being owed $23 million by Sports Authority, Under Armour isn't too worried and for good reason. Last year was an amazing sales year for the brand and the momentum is still growing. In 2015, LeBron James was selling "10 times more" sneakers than Stephen Curry, now Curry is selling more sneakers in the U.S. than James.
According to Forbes, Under Armour projects $4.95 billion in net revenue and $503 million in full-year operating income for 2016.
“Although we do not currently believe that the exposure to our receivables from The Sports Authority is materially impacted by these developments, we will continue to monitor the proceedings and its related impact during the first quarter of 2016,” said Under Armour in a statement on Friday. The sportswear brand went on to say that it would work to keep on track of its full-year goals by, "continued sales to The Sports Authority and sales through other channels and customers.”
Under Armour noted that, “The Sports Authority is a longstanding customer of ours, and we intend to support them as they proceed through their restructuring.”
The sportswear brand seems to have a solid plan to reach their goals, but if things start to change its expected to see more Under Armour products at other retailers such as Dicks Sporting Goods or even Foot Locker.