UNDER Armour lowered its outlook for its current fiscal year, saying the company’s restructuring plan is going to cost more than management predicted.
The athletic-wear brand said it decided to close a distribution centre in Rialto, California by March 2026, which will add about US$70 million in extra expenses to its turnaround strategy.
Under Armour now expects its operating loss in the fiscal year to be as much as US$240 million, compared with the previous view of as much as US$214 million. Losses per share are expected to be between 58 to 61 US cents, versus the prior range of 53 to 56 US cents.
The Baltimore-based company is reorganising itself under chief executive officer Kevin Plank, Under Armour’s founder. He retook the top role in April and is searching for cost savings through an overhaul of the company’s operating model and supply chain.
Shares fell 2.9 per cent at 5.45 pm in after-market trading in New York on Monday (Sep 9). The stock has declined 15 per cent this year to the close. BLOOMBERG
