Performance footwear and apparel brand Under Armour has cut its full-year outlook as a result of the liquidation of its long-standing customer The Sports Authority. 

The Sports Authority filed for bankruptcy protection in early March, saying it would close around 140 of its 450 store estate. A buyer was expected to emerge, but the bankruptcy court has now approved the retailer's liquidation, as opposed to a restructuring or sale, prompting Under Armour to say it expects to realise only US$43m of the anticipated $163m in sales from the business for 2016. Additionally, Under Armour will incur a $23m impairment charge in its current quarter.

As a result, the company now expects net revenues of around $4.92bn in 2016, representing growth of 24% over 2015 but down from the $5bn predicted previously. It also expects 2016 operating income of around $440m to $445m.

"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," said CEO Kevin Plank. "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."

For the second quarter, Under Armour continues to expect revenue growth to be in the high-20% range. However, as a result of the impairment charge, operating income is now expected to range from $17m to $19m.

In its first-quarter, Under Amour posted a solid quarter of revenue growth, driven by higher footwear and international sales.

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