When one business fails, its failure spins out and also affects clients and customers. The failure of a national mega-retailer, Sports Authority, doesn’t just affect its competitors in the coming months as they have to compete with liquidation sales. The company’s bankruptcy also affects its suppliers, including big companies like Under Armour.

Under Armour is a publicly-traded company, and announced this week that it’s cutting its sales forecast for the coming quarter by $70 million, largely blaming the difference on the failure of Sports Authority. The company, which sells athletic clothing, shoes, and owns multiple fitness-related apps, expected $163 million in sales from the Sports Authority this year. Instead, they expect $43 million from the retailer.

“While The Sports Authority’s bankruptcy impacts our 2016 outlook,” CEO Kevin Plank said in a statement to investors, “our brand’s momentum is stronger than ever as we continue to see growth and increased demand across all categories and geographies.”

The good news for brands is that people are still buying sports gear and shoes: they’re just buying more online, following the pattern of other apparel.

Current Report [Under Armour]

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