March 11, 2020
Net income jumped 54% to €167 million ($185 mm) from €108 million in the final quarter ended Dec. 31 as sales improved 12% to €5,838 million ($6,465 mm) from €5,234 million in a seasonally small period but the coronavirus outbreak in China is expected to reduce Q1 sales there by €800-1,000 million and operating income by €400-500 million.
As expected, the venerable, family-owned retailer filed for Ch. 11 protection in NJ federal bankruptcy court late this afternoon, with the lead filing listing $500,000 - $1 million in assets and $1 million - $10 million in liabilities for Modell’s Sporting Goods, Inc.; 14 other Modell’s entities filed separately and will likely be combined by the court later.
The spread of COVID-19 into Europe and North America, along with a slower than expected return to normal in China, led The Big Cat to rescind its guidance for 10% top line growth this year.
Pou Sheng retail sales declined 83% in Feb. to $44,283,000 from $259,027,000 as store closures and reduced traffic due to the coronavirus decimated what was already a seasonally slow month because of Chinese New Year.
Evans, 60, who ascended to the top job in 2016 and is a 36-year company veteran, announced plans to retire on Jan. 2, 2021, at the end of the fiscal year.