Under Armour expects its second quarter revenues to decline by as much as 50 to 60 per cent as demand for apparel and goods remain low. The American sportswear giant reported worse than expected first-quarter losses and sales as its business continues to be hit hard by the pandemic. Due to store closures and lockdown measures, its revenue declined by 23 percent to $930 million, seeing a revenue decrease of 28 percent in North America and 12 percent in international business.

The brand’s shares fell by 8.6 percent to $9.13 on the stock market — in contrast, those of Nike fell by 0.9 percent and adidas lost 1 percent. Under Armour also reported a net loss of $589.7 million compared to a profit of $22.5 million recorded previous year.

The athletic apparel company will cut about $325 million n operating costs in 2020 to address challenges posed by the pandemic. As it looks to revive its business, the company could face $475 million to $525 million million in pretax restructuring costs — in the first quarter, it already recorded $436 million in restructuring and impairment charges.