Un­der Ar­mour low­ers out­look, cut­ting about 280 jobs

The Guardian (Charlottetown) - - BUSINESS -

Un­der Ar­mour is cut­ting ap­prox­i­mately 280 jobs from its global work­force and low­er­ing its full-year rev­enue out­look, over­shad­ow­ing a strong sec­ond-quar­ter and ex­tend­ing woes for com­pa­nies in the re­tail sports sec­tor.

Shares de­clined more than 5 per cent in pre­mar­ket trad­ing Tues­day.

A board-ap­proved re­struc­tur­ing plan will come with about $110 mil­lion to $130 mil­lion in re­lated charges this year. That in­cludes ap­prox­i­mately $15 mil­lion in em­ployee sev­er­ance and ben­e­fits costs.

Un­der Ar­mour Inc. now ex­pects full-year rev­enue growth of 9 per cent to 11 per cent, down from a pre­vi­ous out­look of 11 per cent to 12 per cent growth. The chain fore­sees ful­lyear ad­justed earn­ings be­tween 37 and 40 cents per share.

For the quar­ter ended June 30, the sports cloth­ing and ac­ces­sories com­pany lost $12.3 mil­lion, or 3 cents per share. That com­pares with a loss of $52.7 mil­lion, or 12 cents per share, a year ear­lier.

That’s bet­ter than the loss of 6 cents per share ex­pected by an­a­lysts, ac­cord­ing to a poll by Zacks In­vest­ment Research.

Rev­enue for the Baltimore com­pany climbed to $1.09 bil­lion, from $1 bil­lion, squeak­ing by Wall Street pro­jec­tions.

AP PHOTO

This Jan. 4, 2016, photo shows a pair of Un­der Ar­mour Speed­Form Gemini 2 Record Equipped run­ning shoes. On Tues­day, Un­der Ar­mour an­nounced it is cut­ting ap­prox­i­mately 280 jobs from its global work­force and low­er­ing its full-year rev­enue out­look, over­shad­ow­ing a sec­ond-quar­ter per­for­mance that topped most ex­pec­ta­tions.

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