Under Armour flags larger loss as restructuring program continues
Under Armour is expecting a bigger operating loss for fiscal 2025 after a further evaluation of its ongoing restructuring plan.
The sportswear company has forecast an operating loss of $220 to $240 million for the year ending March 31, compared to its previous expectation of $194 to $214 million.
The loss is the result of the firm’s pre-tax restructuring and related charges in connection with its reorganization, which is now expected to be $140-$160 million instead of $70-90 million as previously reported. This was due to the decision to exit one of its primary distribution facilities in Rialto, California, by March 2026.
These charges include $37 million in employee severance and benefits costs, $45 million related to various transformational initiatives, and $78 million in facility, software, and other asset-related charges and impairments.
“We continue to proactively identify opportunities to optimize our business to help create a better and stronger Under Armour,” said Under Armour CFO David Bergman.
“As we work to reconstitute our brand and increase our financial productivity over the long term – optimizing our supply-chain network will make us a more efficient, uncomplicated, and agile company.”
For the first quarter of FY25, the company reported a 10 per cent decline in revenue to $1.2 billion, driven by a 14 per cent drop in North American sales.
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